Blink vs. ABB: Which Electric Vehicle Charging Stock is a Better Buy? Lets let Manisha decide Van ABB– Governmental efforts to move toward a sustainable future, higher efficiency, and lower recurring costs are factors that have been driving increasing demand for electric vehicles (EVs) around the globe. As such, EV charging companies such as Blink (BLNK) and ABB (ABB) are strategically positioned to grow exponentially. But which of these two stocks is a better buy now? Let’s find out. By Manisha Chatterjee Dec 29, 2020 Blink Charging Co. (BLNK-Get Rating) and ABB Ltd (ABB-Get Rating) are two of the world’s leading providers of charging services for electric vehicles (EVs). An owner, operator, and provider of EV charging equipment and networked EV charging services, BLNK offers residential and commercial EV charging equipment. ABB operates through four divisions — Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. Global EV sales are expected to rise to 26 million by 2030from roughly 1.7 million in 2020. As a result of this accelerating adoption of EVs, both BLNK and ABB are expected to gain as more drivers seek fast, convenient, and reliable charging options. But, while BLNK has returned 681.8% over the past five years, ABB has gained 53.4%. In terms of year-to-date performance, BLNK is a clear winner with 2421.5% returns versus ABB’s 15.7%. But which of these two stocks is a better pick now? Let’s have a look . Latest Movements On December 22, BLNK announced that it had signed an exclusive seven-year agreement with Lehigh Valley Health Network (LVHN). Per the agreement, BLNK will own and operate the charging stations and will be able to deploy EV chargers across LVHN’s hundreds of health care facilities. The company announced on December 16 the installation of an additional 10 IQ 200 EV chargers at St. Luke’s University Health Network’s Orwigsburg, Quakertown, and Easton, PA hospital campuses. The company announced on December 15 that it had signed an exclusive five-year contract with two five-year renewal options for the deployment of 20 company-owned IQ 200 units at four Blessing Health System locations in Quincy, Illinois. On December 10 BLNK announced the introduction of an innovative pole mounting kit for the company’s IQ 200 EV charging stations, which is expected to substantially increase the number of locations that can deploy EV chargers. On December 3, BLNK announced an agreement with JSC Management Group, a large Burger King franchisee, to deploy numerous EV charging stations at key Burger King locations across the Northeast. Additional JSC locations are expected to be added to the company’s network in late 2020 or early 2021. ABB installed its 1,000th high-power charger in Norway, earlier this month, which marks an important milestone in the country’s ambitious journey in contributing to the achievement of a zero-emission economy. The company entered season 7 of the ABB FIA Formula E World Championship as the title partner for the fourth season. ABB also launched a brand-new podcast, ABB Decoded, on December 4. A two-year contract was awarded to ABB and Nüvü Camēras by NASA’s Jet Propulsion Laboratory in November. The Nancy Grace Roman Space Telescope’s CoronaGraph Imager (CGI), which will have two high sensitivity cameras with electronic cores, will be developed by ABB along with Nüvü. ABB secured an order of roughly $150 million on November 17 to power next-generation cruise ships built by Italian shipbuilder Fincantieri, with Azipod electric propulsion, which has a proven ability to significantly reduce fuel consumption on board. Recent Financial Results BLNK’s revenue has surged 18.4% year-over-year to $0.9 million for the third quarter ended September 30, 2020, driven primarily by significant increases in product sales. With increased demand for the company’s commercial and residential products, its sales revenue has increased 74.4% year-over-year to $0.6 million. 668 EV charging stations were sold, deployed, or acquired across 25 states. And company owned chargers deployed during the quarter increased 87% year-over-year. ABB’s revenue for the third quarter ended September 30, 2020 has increased 7% sequentially to $6.6 billion. Including power grid gains, its net income increased substantially to $4.5 billion. Orders increased slightly from the second quarter to $6.1 billion. In the Robotics & Discrete Automation (RA) segment, orders increased 12.9% sequentially to $720 million. Expected Financial Performance The market expects BLNK’s revenue to increase 89.4% in 2021. The company’s EPS is expected to grow 15.2% in 2021. In comparison, the market expects ABB’s revenue to increase 6.2% in 2021. The company’s EPS is expected to grow at a rate of 14.6% per annum over the next five years. Profitability ABB’s trailing-12-month revenue of $26.02 billion is much higher than BLNK’s. Moreover, ABB is more profitable with a gross margin of 30.7% versus BLNK’s 27.84%. Also, ABB’s ROE and ROA of 3.42%, and 3.53%, respectively, compare favorably with BLNK’s negative values. Thus, ABB is the more profitable stock here. Valuation In terms of forward P/E, ABB is currently trading at 29.96x, much more expensive than BLNK. However, ABB is less expensive both in terms of trailing-12-month P/S (BLNK-Get Rating), and trailing-12-month EV/S (BLNK-Get Rating). In terms of trailing-12-month price to book, BLNK’s 91.70x is significantly higher than ABB’s 3.50x. POWR Ratings While BLNK is rated “Buy” in our proprietaryPOWR Ratingssystem, ABB is rated “Strong Buy.” Here are how the four components of overall POWR Rating are graded for BLNK and ABB: BLNK has an “A” for Trade Grade, and Peer Grade, and a “C” for Buy & Hold Grade, and Industry Rank. It is currently ranked #13 of 37 stocks in theSpecialty Retailersindustry. ABB holds an “A” for Trade Grade, Buy & Hold Grade, and Peer Grade, and a “B” for Industry Rank. It is currently ranked #4 of 62 stocks in theIndustrial – Machineryindustry. The Winner Both BLNK and ABB are good investment bets considering their market dominance and continued expansion. However, at a lower valuation, ABB appears to be a better buy based on its higher earnings growth potential, and higher profitability.
Why all this negativity 10/22? ABB price target raised to CHF 28.10 from CHF 27.50 at Morgan Stanley 10/22 ABB Morgan Stanley analyst Ben Uglow raised the firm's price target on ABB to CHF 28.10 from CHF 27.50 and keeps an Underweight rating on the shares. ShowRelated Items >> ABB price target lowered to CHF 35 from CHF 36 at UBS 10/22 ABB UBS analyst Guillermo Peigneux-Lojo lowered the firm's price target on ABB to CHF 35 from CHF 36 and keeps a Buy rating on the shares. ShowRelated Items >> ABB price target raised to CHF 33 from CHF 31 at Barclays 10/15 ABB Barclays analyst Shane McKenna raised the firm's price target on ABB to CHF 33 from CHF 31 and keeps an Equal Weight rating on the shares.
re SNAP-It would really be pushing my luck to try an EIGHTH trade with the same stock with a PERFECT 7-7 average I mean who's just asking for trouble then. You don't want me in the name it will tank.
I don't know where Manisha gets her data, but BLNK lost money last year (-$0.59) and is forecast to lose money next year ($0.47). I have no idea where she gets a PE of 12.
There's a web site where they list the most searched names for different time spans and BLNK was #1 for 5 minutes. Then I typed in ABB and it said " Congratulations you are the first ABB search today "
Manisha is probably going off next years # after BLNK’s revenue to increase 89.4% in 2021 I don't see where she says 12 though. 12 months.
That's because Blink is a ... I don't know what you'd call it... a glamor stock for Millenials that they hear about everyday. "Gee chargers... Cramer says Blink. And Chargepoint". Unless they follow VZ, they've never heard of ABB. Thing is Stoney, here within the next 3 weeks tops, the EV sector will pull-back. These temporary mania things always do that. Blink is up to its 200 day today. Its retail traders Stoney. Now, when the EV sector pulls back, ABB won't even blink. No pun intended. That's why it's a granny stock dummy. They are so much more than a just a one trick pony. On SNAP... had you listened, you'd have 8 perfect trades. I'm on 12 or 13 with RBLX.
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