Head-To-Head Analysis: Cricut (NASDAQ:CRCT) vs. Gogoro (NASDAQ:GGR)

Gogoro (NASDAQ:GGR) and Cricut (NASDAQ:CRCT) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Volatility and Risk

Gogoro has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Cricut has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Gogoro and Cricut, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogoro	1	0	0	0	1.00
Cricut	4	1	0	0	1.20

Cricut has a consensus target price of $3.67, suggesting a potential downside of 10.90%. Given Cricut’s stronger consensus rating and higher probable upside, analysts clearly believe Cricut is more favorable than Gogoro.

Earnings and Valuation

This table compares Gogoro and Cricut”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogoro	$281.48 million	0.19	-$80.80 million	($5.42)	-0.68
Cricut	$708.78 million	1.23	$76.71 million	$0.36	11.43

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

Insider & Institutional Ownership

15.9% of Gogoro shares are owned by institutional investors. Comparatively, 19.6% of Cricut shares are owned by institutional investors. 18.0% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Gogoro and Cricut’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gogoro	-28.71%	-53.99%	-10.94%
Cricut	10.82%	20.44%	12.04%

Summary

Cricut beats Gogoro on 12 of the 13 factors compared between the two stocks.

About Gogoro

Gogoro Inc. provides battery swapping services in Taiwan, India, and internationally. It also develops Swap and Go battery system that delivers full power to electric-powered two-wheelers. In addition, the company offers battery swapping technology in the form of hardware, software, and service, including Gogoro Smart Batteries, GoStation, Gogoro Network Software & Battery Management Systems, Smartscooter, GoReward, and related components and kits. The company was incorporated in 2011 and is based in Taipei, Taiwan.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.