Reviewing ChargePoint (NYSE:CHPT) & Lear (NYSE:LEA)

Lear (NYSE:LEA) and ChargePoint (NYSE:CHPT) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares Lear and ChargePoint”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$22.99 billion	0.23	$506.60 million	$8.18	12.66
ChargePoint	$417.08 million	0.47	-$277.07 million	($11.65)	-0.72

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Lear and ChargePoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	10	2	0	2.17
ChargePoint	3	7	1	0	1.82

Lear presently has a consensus price target of $118.60, indicating a potential upside of 14.52%. ChargePoint has a consensus price target of $13.56, indicating a potential upside of 60.97%. Given ChargePoint’s higher possible upside, analysts plainly believe ChargePoint is more favorable than Lear.

Institutional and Insider Ownership

97.0% of Lear shares are owned by institutional investors. Comparatively, 37.8% of ChargePoint shares are owned by institutional investors. 0.9% of Lear shares are owned by company insiders. Comparatively, 3.5% of ChargePoint shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Lear and ChargePoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lear	2.05%	13.94%	4.63%
ChargePoint	-66.76%	-163.56%	-22.86%

Risk & Volatility

Lear has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500.

Summary

Lear beats ChargePoint on 10 of the 14 factors compared between the two stocks.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.