MVST vs. PATH: Which Growth Tech Stock Belongs in Your Portfolio?

Both Microvast Holdings, Inc. MVST and UiPath PATH are speculative growth tech stocks banking on automation trends in the long haul. MVST develops and manufactures batteries supporting electrification, while PATH offers an end-to-end platform for AI-driven robotic process automation (RPA) for enterprises.

Let us analyze further to find out which of these two stocks is a better investment opportunity.

The Case for UiPath

In the third quarter of fiscal 2026, PATH registered 16% year-over-year growth in its top line, driven by the rapid adoption of AI and automation strategies by enterprises. This further resulted in year-over-year annual recurring revenue growth of 11%, hinting at customers’ scaling of agentic automation across the enterprise.

The swift adoption of AI-backed automation across industries, supported by a 107% dollar-based net retention rate and 8.2% year-over-year growth in free cash flow, positions PATH to sustain its growth trajectory.

The company maintains a strong liquidity position with cash and equivalents of $1.4 billion as of Oct. 31, 2025, against no current debt. That being said, a current ratio of 2.7 is significantly higher than the industry’s 0.9, enabling the company to pay off short-term obligations easily.

UiPath’s automation platform differentiates itself by incorporating RPA with AI, streamlining workflows efficiently. The fast-paced AI adoption reflects growth in its revenues, which accelerates further as the company plays its cards well in terms of product innovation. PATH announced the integration with Microsoft Azure AI Foundry, which enables customers to automate end-to-end processes by leveraging its agents interacting with Azure AI Foundry agents and models.

PATH’s partnererd with OpenAI to build a ChatGPT connector that incorporates OpenAI frontier models with enterprise customer workflows. It is a boost in time to value and ROI from agentic AI efforts, which is a testament to its continuous efforts in improving its offering.

The Case for Microvast

In the third quarter of 2025, MVST registered 21.6% year-over-year growth in its top line, fueled by robust demand across Asia and Europe, and a favorable product mix.

Microvast capitalizes on the rising adoption of electric vehicles (EVs), resulting in higher demand for batteries. Its all-solid-state battery technology is utilized in advanced robotic systems, automated factory vehicles and port equipment. MVST’s non-flammable battery technology is highly sought after for autonomous platforms.

As of the nine months ended Sept. 30, 2025, MVST reported $76.3 million in adjusted EBITDA compared with an adjusted EBITDA of negative $53.5 million. A recovery as such highlights the company’s aspirations to attain scalability and maintain efficiency at its core operations.

The strong top-line performance failed to translate into net profit during the aforementioned quarter. The company registered a net loss of $1.5 million due to changes in warrant/loan valuation amounting to $12.6 million. A 23.7% year-over-year rise in operating expenses due to a 66.1% surge in general and administrative expenses resulted in this loss.

As of Sept. 30, 2025, MVST held $143 million in cash and equivalents against a current debt of $335 million, challenging its liquidity position, which is further reflected in its current ratio of 0.8.

Apart from this financial distress, the company faces fierce competitive pressure in the EV battery market. Companies like General Motors and Toyota invest in EV battery manufacturing, which can affect the pricing power of MVST. Keeping up with this challenge requires MVST to invest heavily in research and development, which might affect its ability to balance growth and profitability.

How Do Estimates & Valuation Compare for PATH & MVST?

The Zacks Consensus Estimate for UiPath’s fiscal 2026 sales is pegged at $1.6 billion, suggesting a 11.5% year-over-year hike. For fiscal 2026, the consensus estimate for EPS is pinned at 67 cents, increasing 26.4% year over year. Five EPS estimates for fiscal 2026 have moved north in the past 60 days with no southward revision.

The Zacks Consensus Estimate for Microvast’s 2025 sales is pegged at $462.3 million, implying a 21.7% year-over-year growth. For 2025, the consensus mark for EPS is set at 17 cents compared with a loss of 27 cents per share reported in the year-ago quarter. One EPS estimate for 2025 has moved south in the past 60 days with no northward revision.

In terms of valuation, Microvast is trading at a 12-month forward price-to-earnings (P/E) ratio of 13.9, which is below its 3-month median of 20.5. UiPath’s 12-month forward P/E ratio is 22.5, lower than its median of 68.1.

Verdict

UiPath is a forerunner in the AI agentic revolution, maintaining a dominant position, banking on its impressive balance sheet. In the third quarter of fiscal 2026, PATH demonstrated robust growth in its top line, fueled by rising automation. It maintains a highly liquid position, which is a massive safety net for future investments.

PATH’s integration with Microsoft Azure AI and OpenAI creates a path for its operating system for enterprise AI, moving past its RPA to complex workflows. With a current ratio surpassing that of its industry, UiPath is a financially equipped company that can outlast its peers while scaling its AI-driven offerings.

We recommend investors stay away from MVST now or sell off their holdings due to its alarming liquidity stance and operational instability. While revenue growth was impressive, profit tanked as operating expenses surged. MVST’s high current debt position and current ratio of 0.8, challenges solvency in the short run. Heavy competition from giants deteriorates pricing power and can topple the balance between growth and profitability.

PATH carries a Zacks Rank #2 (Buy), while MVST has a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research