Contrasting EVgo (NASDAQ:EVGO) & Valvoline (NYSE:VVV)

Valvoline (NYSE:VVV) and EVgo (NASDAQ:EVGO) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

Valvoline has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, EVgo has a beta of 2.82, indicating that its stock price is 182% more volatile than the S&P 500.

Profitability

This table compares Valvoline and EVgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valvoline	5.17%	65.12%	7.11%
EVgo	-13.50%	N/A	-5.79%

Analyst Ratings

This is a summary of current recommendations for Valvoline and EVgo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valvoline	0	4	11	1	2.81
EVgo	2	1	5	0	2.38

Valvoline currently has a consensus target price of $42.56, indicating a potential upside of 20.11%. EVgo has a consensus target price of $4.18, indicating a potential upside of 158.02%. Given EVgo’s higher possible upside, analysts clearly believe EVgo is more favorable than Valvoline.

Valuation and Earnings

This table compares Valvoline and EVgo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valvoline	$1.71 billion	2.64	$210.70 million	$0.73	48.54
EVgo	$384.09 million	1.32	-$41.57 million	($0.40)	-4.05

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

Insider and Institutional Ownership

96.1% of Valvoline shares are owned by institutional investors. Comparatively, 17.4% of EVgo shares are owned by institutional investors. 0.7% of Valvoline shares are owned by company insiders. Comparatively, 0.1% of EVgo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Valvoline beats EVgo on 13 of the 15 factors compared between the two stocks.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.

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 EVgo Holdings LLC.