SunCar Technology Group (NASDAQ:SDA) and EVgo (NYSE:EVGO) Critical Review

SunCar Technology Group (NASDAQ:SDA) and EVgo (NYSE:EVGO) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares SunCar Technology Group and EVgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunCar Technology Group	N/A	N/A	N/A
EVgo	-20.54%	N/A	-4.85%

Analyst Ratings

This is a breakdown of current recommendations for SunCar Technology Group and EVgo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCar Technology Group	0	0	0	0	N/A
EVgo	0	3	3	0	2.50

EVgo has a consensus target price of $4.67, indicating a potential upside of 109.27%. Given EVgo’s higher probable upside, analysts clearly believe EVgo is more favorable than SunCar Technology Group.

Insider and Institutional Ownership

0.3% of SunCar Technology Group shares are owned by institutional investors. Comparatively, 17.4% of EVgo shares are owned by institutional investors. 22.2% of SunCar Technology Group shares are owned by insiders. Comparatively, 67.0% of EVgo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SunCar Technology Group has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500. Comparatively, EVgo has a beta of 2.53, indicating that its share price is 153% more volatile than the S&P 500.

Earnings and Valuation

This table compares SunCar Technology Group and EVgo’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCar Technology Group	$363.75 million	1.97	-$26.91 million	N/A	N/A
EVgo	$160.95 million	4.18	-$42.43 million	($0.38)	-5.87

SunCar Technology Group has higher revenue and earnings than EVgo.

Summary

EVgo beats SunCar Technology Group on 6 of the 10 factors compared between the two stocks.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of LS Power Development, LLC.