Reviewing Gogoro (NASDAQ:GGR) and Electrameccanica Vehicles (NASDAQ:SOLO)

Gogoro (NASDAQ:GGRGet Rating) and Electrameccanica Vehicles (NASDAQ:SOLOGet Rating) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

This table compares Gogoro and Electrameccanica Vehicles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogoro -25.84% -35.10% -11.87%
Electrameccanica Vehicles -1,382.81% -35.37% -32.79%

Earnings and Valuation

This table compares Gogoro and Electrameccanica Vehicles’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogoro $382.83 million 1.25 -$98.91 million ($0.45) -7.36
Electrameccanica Vehicles $6.81 million 9.11 -$41.33 million ($1.04) -0.50

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

Insider & Institutional Ownership

10.3% of Gogoro shares are held by institutional investors. Comparatively, 8.9% of Electrameccanica Vehicles shares are held by institutional investors. 4.8% of Gogoro shares are held by insiders. Comparatively, 9.8% of Electrameccanica Vehicles shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gogoro and Electrameccanica Vehicles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogoro 1 0 1 0 2.00
Electrameccanica Vehicles 0 1 0 0 2.00

Gogoro presently has a consensus target price of $5.77, indicating a potential upside of 74.22%. Electrameccanica Vehicles has a consensus target price of $0.60, indicating a potential upside of 15.38%. Given Gogoro’s higher probable upside, equities analysts clearly believe Gogoro is more favorable than Electrameccanica Vehicles.

Summary

Gogoro beats Electrameccanica Vehicles on 8 of the 12 factors compared between the two stocks.

About Gogoro

(Get Rating)

Gogoro Inc. manufactures two-wheeled electric vehicle. The company offers two-wheeled electric scooter that provides cloud connectivity and electric powertrain that utilizes swappable battery infrastructure for gathering, analyzing, and sharing riding data through a mobile application on the rider's smartphone. It also operates battery swapping infrastructure network for electric vehicles that can be deployed across the cities to provide portable power through battery vending machines. Gogoro Inc. has a strategic partnership with Foxconn Electronics Inc. The company was founded in 2011 and is based in Taoyuan City, Taiwan.

About Electrameccanica Vehicles

(Get Rating)

Electrameccanica Vehicles Corp engages in the development and manufacture of electric vehicles. It operates through the Electric Vehicles and Custom Build Vehicles segments. The Electric Vehicles segment develops and manufactures electric vehicles for mass markets. The Custom Build Vehicles segment offers custom-built vehicles. The company was founded by Jerry Kroll and Henry R. Reisner on February 16, 2015 and is headquartered in Burnaby, Canada.

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