Financial Review: ECD Automotive Design (NASDAQ:ECDA) & Gogoro (NASDAQ:GGR)

Gogoro (NASDAQ:GGR) and ECD Automotive Design (NASDAQ:ECDA) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Gogoro and ECD Automotive Design”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogoro	$349.85 million	0.52	-$76.04 million	($0.32)	-1.94
ECD Automotive Design	$15.12 million	2.25	-$1.60 million	N/A	N/A

ECD Automotive Design has lower revenue, but higher earnings than Gogoro.

Volatility & Risk

Gogoro has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.51, meaning that its share price is 251% less volatile than the S&P 500.

Institutional & Insider Ownership

15.9% of Gogoro shares are held by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are held by institutional investors. 4.8% of Gogoro shares are held by insiders. Comparatively, 16.3% of ECD Automotive Design shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Gogoro and ECD Automotive Design, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogoro	0	3	0	0	2.00
ECD Automotive Design	0	0	1	0	3.00

Gogoro currently has a consensus target price of $1.35, suggesting a potential upside of 117.78%. ECD Automotive Design has a consensus target price of $9.00, suggesting a potential upside of 818.37%. Given ECD Automotive Design’s stronger consensus rating and higher possible upside, analysts plainly believe ECD Automotive Design is more favorable than Gogoro.

Profitability

This table compares Gogoro and ECD Automotive Design’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gogoro	-24.00%	-31.68%	-9.67%
ECD Automotive Design	N/A	N/A	N/A

Summary

ECD Automotive Design beats Gogoro on 10 of the 12 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 ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.