GreenPower Motor (NASDAQ:GP) vs. Polestar Automotive Holding UK (NASDAQ:PSNY) Critical Review

GreenPower Motor (NASDAQ:GP) and Polestar Automotive Holding UK (NASDAQ:PSNY) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for GreenPower Motor and Polestar Automotive Holding UK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenPower Motor	1	0	0	0	1.00
Polestar Automotive Holding UK	1	2	0	0	1.67

Profitability

This table compares GreenPower Motor and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenPower Motor	-105.06%	N/A	-47.41%
Polestar Automotive Holding UK	N/A	N/A	N/A

Institutional and Insider Ownership

1.7% of GreenPower Motor shares are owned by institutional investors. Comparatively, 1.0% of Polestar Automotive Holding UK shares are owned by institutional investors. 28.1% of GreenPower Motor shares are owned by company insiders. Comparatively, 0.0% of Polestar Automotive Holding UK shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares GreenPower Motor and Polestar Automotive Holding UK”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenPower Motor	$15.54 million	0.19	-$18.66 million	($5.58)	-0.17
Polestar Automotive Holding UK	$2.03 billion	0.52	-$2.05 billion	($19.51)	-0.75

GreenPower Motor has higher earnings, but lower revenue than Polestar Automotive Holding UK. Polestar Automotive Holding UK is trading at a lower price-to-earnings ratio than GreenPower Motor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GreenPower Motor has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Summary

GreenPower Motor beats Polestar Automotive Holding UK on 6 of the 11 factors compared between the two stocks.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.

About Polestar Automotive Holding UK

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.