Comparing Federal Screw Works (OTCMKTS:FSCR) and EVgo (NASDAQ:EVGO)

EVgo (NASDAQ:EVGO) and Federal Screw Works (OTCMKTS:FSCR) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

17.4% of EVgo shares are held by institutional investors. 58.8% of EVgo shares are held by insiders. Comparatively, 46.2% of Federal Screw Works shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers 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 Federal Screw Works, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	1	2	6	0	2.56
Federal Screw Works	0	0	0	0	0.00

EVgo currently has a consensus price target of $5.82, indicating a potential upside of 85.24%. Given EVgo’s stronger consensus rating and higher probable upside, equities analysts clearly believe EVgo is more favorable than Federal Screw Works.

Valuation & Earnings

This table compares EVgo and Federal Screw Works”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$256.83 million	3.77	-$44.33 million	($0.39)	-8.05
Federal Screw Works	$97.55 million	0.13	$1.62 million	$0.98	9.18

Federal Screw Works has lower revenue, but higher earnings than EVgo. EVgo is trading at a lower price-to-earnings ratio than Federal Screw Works, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares EVgo and Federal Screw Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVgo	-14.76%	N/A	-5.69%
Federal Screw Works	1.36%	N/A	N/A

Risk and Volatility

EVgo has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500. Comparatively, Federal Screw Works has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

EVgo beats Federal Screw Works on 8 of the 13 factors compared between the two stocks.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) 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, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.