Financial Contrast: Canoo (NASDAQ:GOEV) versus Gentherm (NASDAQ:THRM)

Gentherm (NASDAQ:THRM) and Canoo (NASDAQ:GOEV) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Valuation & Earnings

This table compares Gentherm and Canoo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.47 billion	0.87	$40.34 million	$2.14	19.31
Canoo	$890,000.00	38.78	-$302.02 million	($3.53)	-0.10

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

Profitability

This table compares Gentherm and Canoo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentherm	4.61%	14.36%	7.41%
Canoo	N/A	-68.39%	-26.16%

Risk & Volatility

Gentherm has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Canoo has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Gentherm and Canoo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	0	2	1	0	2.33
Canoo	0	2	5	0	2.71

Gentherm presently has a consensus target price of $57.00, suggesting a potential upside of 37.95%. Canoo has a consensus target price of $22.71, suggesting a potential upside of 6,268.01%. Given Canoo’s stronger consensus rating and higher probable upside, analysts clearly believe Canoo is more favorable than Gentherm.

Insider & Institutional Ownership

97.1% of Gentherm shares are owned by institutional investors. Comparatively, 36.2% of Canoo shares are owned by institutional investors. 1.9% of Gentherm shares are owned by company insiders. Comparatively, 7.1% of Canoo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Gentherm beats Canoo on 8 of the 13 factors compared between the two stocks.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

About Canoo

Canoo Inc., a mobility technology company, designs, develops, markets, and manufactures electric vehicles for consumer, commercial fleet, government, and military customers in the United States. the company utilizes its multi-purpose platform architecture, a self-contained, fully functional rolling chassis that directly houses the critical components for operation of an electric vehicle, including its in-house designed proprietary electric drivetrain, battery systems, advanced vehicle control electronics and software, and other critical components. It offers lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups; battery modules; and engineering services. In addition, the company provides digital ecosystem, a suite of products and software tools comprising CanooHub, a web-based fleet management portal; driver mobile app for real-time vehicle status and access to remote commands; vehicle human machine interface that encompasses vehicle controls, customizable settings, range mode, cruise control, vehicle alerts, camera feeds for safety and connectivity, such as cellular, Wi-Fi and Bluetooth, as well as data and analytics infrastructure. Canoo Inc. was founded in 2017 and is headquartered in Torrance, California.