Analyzing EVgo (NASDAQ:EVGO) and O’Reilly Automotive (NASDAQ:ORLY)

EVgo (NASDAQ:EVGO) and O’Reilly Automotive (NASDAQ:ORLY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Profitability

This table compares EVgo and O’Reilly Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVgo	-13.50%	N/A	-5.75%
O’Reilly Automotive	14.27%	-232.45%	15.79%

Insider and Institutional Ownership

17.4% of EVgo shares are owned by institutional investors. Comparatively, 85.0% of O’Reilly Automotive shares are owned by institutional investors. 0.1% of EVgo shares are owned by company insiders. Comparatively, 0.8% of O’Reilly Automotive shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

EVgo has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares EVgo and O’Reilly Automotive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$402.95 million	1.00	-$41.57 million	($0.40)	-3.19
O’Reilly Automotive	$17.78 billion	3.87	$2.54 billion	$3.14	27.10

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for EVgo and O’Reilly Automotive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	2	1	6	0	2.44
O’Reilly Automotive	0	4	14	1	2.84

EVgo presently has a consensus target price of $2.93, suggesting a potential upside of 129.69%. O’Reilly Automotive has a consensus target price of $106.50, suggesting a potential upside of 25.17%. Given EVgo’s higher probable upside, research analysts clearly believe EVgo is more favorable than O’Reilly Automotive.

Summary

O’Reilly Automotive beats EVgo on 12 of the 15 factors compared between the two stocks.

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.

About O’Reilly Automotive

O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.