Financial Review: Volkswagen (OTC:VWAGY) and Gogoro (NASDAQ:GGR)

Gogoro (NASDAQ:GGR) and Volkswagen (OTC:VWAGY) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

15.9% of Gogoro shares are owned by institutional investors. 4.8% of Gogoro shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Gogoro has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Volkswagen has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gogoro and Volkswagen, as reported by MarketBeat.

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

Gogoro presently has a consensus price target of $0.50, suggesting a potential upside of 20.45%. Given Gogoro’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gogoro is more favorable than Volkswagen.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogoro	$310.52 million	0.39	-$123.25 million	($0.45)	-0.92
Volkswagen	$348.78 billion	0.17	$17.97 billion	$2.64	4.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gogoro	-39.69%	-53.23%	-15.73%
Volkswagen	3.77%	6.35%	1.96%

Summary

Volkswagen beats Gogoro on 8 of the 13 factors compared between the two stocks.

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.

About Volkswagen

Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles and engines, and light commercial vehicles; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, special gear units, and propulsion components. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti brands. Volkswagen AG was incorporated in 1937 and is based in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.