Blink Charging Co. (BLNK) and Beam Global (BEEM) are two major producers of EV charging equipment and solar powered products in the United States and internationally. BLNK offers EV charging services and residential and commercial EV charging equipment. BEEM provides electric vehicle autonomous renewable chargers and sells solar powered products and proprietary technology.
Battery charging needs for electric vehicles are growing significantly as the EV industry accelerates towards the mainstream. While a plethora of companies have broken into the EV charging sector, the two leading companies in this space, BLNK and BEEM, are poised to surge substantially.
Both stocks generated significant returns over the past year. While BLNK returned 2350.5% over this period, BEEM gained 1255.6%. In terms of one-month performance, BLNK is the clear winner with 76% gains versus BEEM’s 72.6% returns. But which of these stocks is a better pick now? Let us find out.
Latest Movements
On December 22, BLNK announced a seven-year agreement with Lehigh Valley Health Network, which allows BLNK to own and operate charging stations across the health network's extensive portfolio of locations. This will enable BLNK to expand its operations to meet increasing consumer demand in the booming EV market.
On December 16, the company announced the deployment of an additional 10 IQ 200 EV chargers at St. Luke’s University Healthcare facilities across Pennsylvania. BLNK is also scheduled to install eight additional chargers at the Allentown, Pa. hospital campus. This will enable the company to generate substantial revenues as utilization of the charging stations grows across the country.
On December 17, BEEM announced that the City of Montebello will install two EV ARC solar-powered EV charging terminals to serve city fleet vehicles and provide an emergency preparedness asset. The company expects to witness a significant growth acceleration in 2021 as the Federal government joins local governments in aggressively investing in the infrastructure to support the sustainable electrification of transportation.
BEEM recently announced an agreement with Maxim Group LLC under which the underwriter has agreed to purchase 250,000 shares of the company’s common stock. The proceeds of the offering are expected to be approximately $7.5 million.
Recent Financial Results
In the third quarter ended September 30, 2020, BLNK’s revenue surged 18% year-over-year to $0.90 million, driven primarily by EV charging installations across states.
BLNK’s product sales grew 74% from the year-ago value to $0.6 million, related primarily to increased demand for the company's commercial and residential products, while BLNK owned chargers deployed during the quarter increased 87% year-over-year. The company deployed, sold, or acquired 668 EV charging stations across 25 states.
In contrast, BEEM’s revenue declined 30.7% year-over-year to $1.24 million for the third quarter ended September 30, 2020 due to delays in the receipt of orders, partially related to the impact of the COVID-19 virus. The company’s cash flow has 220.4% over for the nine-month period to $12.33 million.
Past and Expected Financial Performance
BLNK’s revenue has grown at a CAGR of 3.1%, over the past five years.
Analysts expect the company’s revenue to increase 113.7% in the current quarter, 91.4% in the current year, and 89.4% next year. BLNK’s EPS is expected to grow 15.2% next year.
BEEM’s revenue has grown at a CAGR of 24% over the past five years.
Analysts expect the company’s revenue to increase 229.3% in the current quarter, 10.4% in the current year, and 233.7% next year. BEEM’s EPS is expected to grow 75.4% next year.
Profitability
BEEM’s trailing-12-month revenue is 1.01 times BLNK’s. But BLNK is more profitable with a gross profit margin of 27.8% versus BEEM’s negative returns.
POWR Ratings
Both BLNK and BEEM are rated “Strong Buy” in our proprietary POWR Ratings system. Here are how the four components of our overall POWR Rating are graded for BLNK and BEEM:
BLNK has an “A” for Trade Grade and Peer Grade, a “B” for Buy & Hold Grade, and a “C” for Industry Rank. In the 37-stock Specialty Retailers industry, it is ranked #5.
BEEM has an “A” for Trade Grade, Buy & Hold Grade and Peer Grade, and a “C” for Industry Rank. It is ranked #5 of 19 stocks in the Solar industry.
The Winner
While both BLNK and BEEM are good long-term investments considering their market dominance and continued expansion, BEEM appears to be a better buy based on the factors discussed here.
While BLNK is more profitable, BEEM could
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BLNK shares were trading at $47.28 per share on Monday afternoon, down $2.22 (-4.48%). Year-to-date, BLNK has gained 2,441.94%, versus a 17.89% rise in the benchmark S&P 500 index during the same period.
About the Author: Imon Ghosh
Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization.
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