Professor Forman’s Experience and Interests:Įrnest Forman is a Professor of Decision Sciences at The George Washington University’s School of Business. Risk Analysis and Decision Making for Covid-19 When is an Ounce of Prevention Worth More than a Pound of Cure? Comparatively, Blink Charging is trading at a discount of 29% compared to consensus estimates.Risk Measurement and Management ‘Short’ Videosĭata Driven Decisions vs.

Between the two companies, I believe EVgo seems a better stock right now, given its trading at a discount of over 75%, according to Wall Street price target estimates. This means, both EVgo and Blink Charging will need to raise equity several times going forward, which could mean a dilution in shareholder value.Īt the time of writing, EVGO stock is valued at a forward price to 2022 sales multiple of 36.6x while the ratio for Blink Charging is also steep at 39x. While the two companies continue to grow top-line rapidly, they are part of a capital-intensive vertical and will remain unprofitable over the next few years. It sold, contracted, or installed 3,264 charging stations, compared to just 380 in the year-ago figure period. In the second quarter of 2021, Blink’s sales rose by 177% year over year to $4.4 million and the company reported a net loss of $13.5 million or $0.32 per share. Its charging stations generate sales via a revenue-sharing model where Blink monetizes energy sales to recover installation costs resulting in higher charging prices compared to peers. Blink Charging has deployed over 23,000 charging stations all over the world and has a 10% market share in the U.S. In the second quarter of 2021, EVgo reported sales of $4.8 million which were 62% higher compared to its year-ago period.īlink Charging sales almost tripled in Q2Ī pure-play EV charging company, Blink Charging owns, operates, and manufactures charging equipment that is used by residential and commercial customers. Its adjusted EBITDA is also forecast to swing from a loss of $58 million to a profit of $507 million over the next six years.ĮVgo stock is down 65% from record highs due to sector-wide volatility as well as the company’s decision to raise additional capital one month after it went public.

In fact, EVgo estimates sales to rise from $20 million in 2021 to $1.28 billion in 2027. In the next five years, EVgo expects to add 2,700 fast chargers to its network which will be a key driver of top-line growth. EVgo has also collaborated with General Motors ( GM ) where it will be the primary charging provider for the automobile giant.

EVgo has gained traction in this high-growth vertical on the back of partnerships with original equipment manufacturers, rideshare providers, site host partners, and other e-mobility stakeholders.

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