Analyzing Proto Labs (NYSE:PRLB) and GreenPower Motor (NASDAQ:GP)

GreenPower Motor (NASDAQ:GP) and Proto Labs (NYSE:PRLB) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares GreenPower Motor and Proto Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenPower Motor	-24.28%	N/A	-7.44%
Proto Labs	5.44%	4.80%	4.22%

Volatility & Risk

GreenPower Motor has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Proto Labs has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares GreenPower Motor and Proto Labs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenPower Motor	$16.39 million	0.71	-$5.48 million	($0.68)	-2.41
Proto Labs	$533.13 million	3.57	$21.24 million	$1.25	63.58

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

Insider and Institutional Ownership

1.7% of GreenPower Motor shares are owned by institutional investors. Comparatively, 84.5% of Proto Labs shares are owned by institutional investors. 28.1% of GreenPower Motor shares are owned by company insiders. Comparatively, 1.3% of Proto Labs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GreenPower Motor and Proto Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenPower Motor	1	1	0	0	1.50
Proto Labs	0	0	3	1	3.25

Proto Labs has a consensus target price of $89.00, suggesting a potential upside of 11.98%. Given Proto Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Proto Labs is more favorable than GreenPower Motor.

Summary

Proto Labs beats GreenPower Motor on 13 of the 15 factors compared between the two stocks.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.

About Proto Labs

Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.