Head to Head Analysis: ATS (NYSE:ATS) and GreenPower Motor (NASDAQ:GP)

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

Volatility and Risk

ATS has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Insider and Institutional Ownership

75.8% of ATS shares are owned by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are owned by institutional investors. 28.1% of GreenPower Motor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ATS and GreenPower Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATS	1	3	3	0	2.29
GreenPower Motor	1	1	0	0	1.50

ATS currently has a consensus price target of $42.50, suggesting a potential upside of 121.94%. Given ATS’s stronger consensus rating and higher probable upside, equities analysts plainly believe ATS is more favorable than GreenPower Motor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ATS	1.60%	8.96%	3.63%
GreenPower Motor	-24.28%	N/A	-7.44%

Earnings & Valuation

This table compares ATS and GreenPower Motor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATS	$2.93 billion	0.63	$51.85 million	$0.34	56.32
GreenPower Motor	$15.28 million	0.04	-$5.48 million	($3.40)	-0.38

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

Summary

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

About ATS

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. In addition, it offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services. Further, the company provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. Additionally, it offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. ATS Corporation serves life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

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.