Analyzing GreenPower Motor (NASDAQ:GP) & Graham (NYSE:GHM)

GreenPower Motor (NASDAQ:GP) and Graham (NYSE:GHM) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares GreenPower Motor and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenPower Motor	-24.28%	N/A	-7.44%
Graham	4.53%	11.09%	5.17%

Insider and Institutional Ownership

1.7% of GreenPower Motor shares are owned by institutional investors. Comparatively, 69.5% of Graham shares are owned by institutional investors. 28.1% of GreenPower Motor shares are owned by company insiders. Comparatively, 2.4% of Graham shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

GreenPower Motor has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Graham has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for GreenPower Motor and Graham, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenPower Motor	1	1	0	0	1.50
Graham	0	3	2	0	2.40

Graham has a consensus price target of $132.50, suggesting a potential upside of 52.66%. Given Graham’s stronger consensus rating and higher possible upside, analysts plainly believe Graham is more favorable than GreenPower Motor.

Valuation & Earnings

This table compares GreenPower Motor and Graham”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenPower Motor	$16.39 million	0.26	-$5.48 million	($0.68)	-0.86
Graham	$245.29 million	4.15	$12.50 million	$1.04	83.46

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

Summary

Graham beats GreenPower Motor on 12 of the 14 factors compared between the two stocks.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.