Critical Analysis: Gogoro (NASDAQ:GGR) vs. Thunder Power (NASDAQ:AIEV)

Thunder Power (NASDAQ:AIEV) and Gogoro (NASDAQ:GGR) 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 valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Volatility & Risk

Thunder Power has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Gogoro has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares Thunder Power and Gogoro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Power	N/A	N/A	N/A	N/A	N/A
Gogoro	$310.64 million	0.28	-$123.25 million	($0.45)	-0.64

Thunder Power has higher earnings, but lower revenue than Gogoro.

Insider and Institutional Ownership

65.0% of Thunder Power shares are owned by institutional investors. Comparatively, 15.9% of Gogoro shares are owned by institutional investors. 5.1% of Thunder Power shares are owned by insiders. Comparatively, 4.8% of Gogoro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Thunder Power and Gogoro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Power	N/A	N/A	N/A
Gogoro	-39.69%	-53.23%	-15.73%

Analyst Recommendations

This is a summary of current recommendations and price targets for Thunder Power and Gogoro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Power	0	0	0	0	0.00
Gogoro	0	2	0	0	2.00

Gogoro has a consensus price target of $0.50, indicating a potential upside of 72.77%. Given Gogoro’s stronger consensus rating and higher probable upside, analysts plainly believe Gogoro is more favorable than Thunder Power.

Summary

Thunder Power beats Gogoro on 5 of the 9 factors compared between the two stocks.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.

About Gogoro

Gogoro Inc. provides battery swapping services in Taiwan, India, and internationally. It also develops Swap and Go battery system that delivers full power to electric-powered two-wheelers. In addition, the company offers battery swapping technology in the form of hardware, software, and service, including Gogoro Smart Batteries, GoStation, Gogoro Network Software & Battery Management Systems, Smartscooter, GoReward, and related components and kits. The company was incorporated in 2011 and is based in Taipei, Taiwan.