Financial Contrast: Volkswagen (OTC:VWAGY) vs. Gogoro (NASDAQ:GGR)

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

Institutional and Insider Ownership

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

Analyst Ratings

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

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

Gogoro has a consensus target price of $0.50, suggesting a potential upside of 30.04%. Given Gogoro’s stronger consensus rating and higher possible upside, analysts clearly believe Gogoro is more favorable than Volkswagen.

Risk & Volatility

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

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volkswagen	$348.78 billion	0.17	$17.97 billion	$2.31	5.10
Gogoro	$310.52 million	0.37	-$123.25 million	($0.45)	-0.85

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.

Summary

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

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.

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.