Financial Contrast: NaaS Technology (NASDAQ:NAAS) and Valvoline (NYSE:VVV)

NaaS Technology (NASDAQ:NAAS) and Valvoline (NYSE:VVV) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares NaaS Technology and Valvoline’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NaaS Technology	N/A	N/A	N/A
Valvoline	5.17%	65.12%	7.11%

Earnings & Valuation

This table compares NaaS Technology and Valvoline”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NaaS Technology	$17.89 million	3.11	-$62.77 million	($87.84)	-0.04
Valvoline	$1.71 billion	2.16	$210.70 million	$0.80	36.15

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

Analyst Ratings

This is a summary of recent recommendations and price targets for NaaS Technology and Valvoline, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NaaS Technology	1	0	0	0	1.00
Valvoline	0	5	12	0	2.71

Valvoline has a consensus price target of $43.06, suggesting a potential upside of 48.89%. Given Valvoline’s stronger consensus rating and higher possible upside, analysts plainly believe Valvoline is more favorable than NaaS Technology.

Insider & Institutional Ownership

1.8% of NaaS Technology shares are held by institutional investors. Comparatively, 96.1% of Valvoline shares are held by institutional investors. 18.0% of NaaS Technology shares are held by insiders. Comparatively, 0.7% of Valvoline shares are held by 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

NaaS Technology has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Valvoline has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Summary

Valvoline beats NaaS Technology on 12 of the 14 factors compared between the two stocks.

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.