EVgo (NYSE:EVGO – Get Rating) and Driven Brands (NASDAQ:DRVN – Get Rating) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Volatility & Risk
EVgo has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Driven Brands has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Profitability
This table compares EVgo and Driven Brands’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
EVgo | -50.51% | N/A | -6.79% |
Driven Brands | 1.81% | 11.51% | 2.98% |
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
EVgo | $54.59 million | 30.02 | -$27.58 million | ($0.40) | -15.45 |
Driven Brands | $2.03 billion | 2.32 | $43.19 million | $0.25 | 112.80 |
Driven Brands has higher revenue and earnings than EVgo. EVgo is trading at a lower price-to-earnings ratio than Driven Brands, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
13.0% of EVgo shares are held by institutional investors. Comparatively, 38.2% of Driven Brands shares are held by institutional investors. 74.5% of EVgo shares are held by insiders. Comparatively, 2.6% of Driven Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for EVgo and Driven Brands, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
EVgo | 0 | 3 | 5 | 0 | 2.63 |
Driven Brands | 0 | 2 | 7 | 0 | 2.78 |
EVgo presently has a consensus price target of $9.64, indicating a potential upside of 56.03%. Driven Brands has a consensus price target of $37.56, indicating a potential upside of 33.18%. Given EVgo’s higher probable upside, research analysts clearly believe EVgo is more favorable than Driven Brands.
Summary
Driven Brands beats EVgo on 10 of the 14 factors compared between the two stocks.
About EVgo
EVgo, Inc. owns and operates a direct current fast charging network 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 and pilots microtargeted advertising, and charging reservations; and maintenance and development and project management services through eXtendTM, including electric vehicle supply equipment installation, networking, and operations. The company was incorporated in 2010 and is based in Los Angeles, California.
About Driven Brands
Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. The company offers various services, such as paint, collision, glass, vehicle repair, car wash, oil change, and maintenance services. It also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as provides training services to repair and maintenance, and paint and collision shops. The company sells its products and services under the Take 5 Oil Change, IMO, CARSTAR, ABRA, Fix Auto, Maaco, Meineke, Uniban, 1-800-Radiator & A/C, PH Vitres D'Autos, Spire Supply, and Automotive Training Institute names. As of December 25, 2021, it operated 4,412 company-operated, franchised, and independently-operated stores. Driven Brands Holdings Inc. was founded in 1972 and is headquartered in Charlotte, North Carolina.
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