Critical Review: ChargePoint (NYSE:CHPT) vs. Denso (OTCMKTS:DNZOY)

ChargePoint (NYSE:CHPT) and Denso (OTCMKTS:DNZOY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

37.8% of ChargePoint shares are owned by institutional investors. 3.5% of ChargePoint shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares ChargePoint and Denso”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$417.08 million	0.49	-$277.07 million	($10.28)	-0.84
Denso	$47.03 billion	0.83	$2.77 billion	$0.86	15.63

Denso has higher revenue and earnings than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than Denso, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ChargePoint and Denso, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	3	8	1	0	1.83
Denso	1	2	0	0	1.67

ChargePoint presently has a consensus target price of $12.95, suggesting a potential upside of 49.64%. Given ChargePoint’s stronger consensus rating and higher possible upside, research analysts clearly believe ChargePoint is more favorable than Denso.

Profitability

This table compares ChargePoint and Denso’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-59.54%	-209.46%	-21.77%
Denso	4.92%	6.84%	4.34%

Risk & Volatility

ChargePoint has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Denso has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Summary

Denso beats ChargePoint on 8 of the 14 factors compared between the two stocks.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.