Critical Review: Electrameccanica Vehicles (NASDAQ:SOLO) versus Oshkosh (NASDAQ:OSK)

Electrameccanica Vehicles (NASDAQ:SOLO) and Oshkosh (NYSE:OSK) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Electrameccanica Vehicles and Oshkosh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electrameccanica Vehicles -3,920.55% -98.03% -64.96%
Oshkosh 6.76% 21.98% 10.27%

Institutional and Insider Ownership

3.0% of Electrameccanica Vehicles shares are owned by institutional investors. Comparatively, 88.7% of Oshkosh shares are owned by institutional investors. 1.6% of Oshkosh shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Electrameccanica Vehicles and Oshkosh, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electrameccanica Vehicles 0 1 1 0 2.50
Oshkosh 1 6 7 0 2.43

Electrameccanica Vehicles presently has a consensus price target of $6.00, suggesting a potential upside of 122.22%. Oshkosh has a consensus price target of $84.86, suggesting a potential upside of 3.19%. Given Electrameccanica Vehicles’ stronger consensus rating and higher probable upside, analysts plainly believe Electrameccanica Vehicles is more favorable than Oshkosh.

Earnings and Valuation

This table compares Electrameccanica Vehicles and Oshkosh’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electrameccanica Vehicles $600,000.00 165.65 -$7.74 million ($0.39) -6.92
Oshkosh $7.71 billion 0.75 $471.90 million $6.36 12.93

Oshkosh has higher revenue and earnings than Electrameccanica Vehicles. Electrameccanica Vehicles is trading at a lower price-to-earnings ratio than Oshkosh, indicating that it is currently the more affordable of the two stocks.

Dividends

Oshkosh pays an annual dividend of $1.08 per share and has a dividend yield of 1.3%. Electrameccanica Vehicles does not pay a dividend. Oshkosh pays out 17.0% of its earnings in the form of a dividend. Oshkosh has increased its dividend for 4 consecutive years.

Risk & Volatility

Electrameccanica Vehicles has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Summary

Oshkosh beats Electrameccanica Vehicles on 13 of the 17 factors compared between the two stocks.

About Electrameccanica Vehicles

Electrameccanica Vehicles Corp., a development-stage company, plans, develops, manufactures, and sells single person electric vehicles under the SOLO name for mass markets. It operates in two segments, Electric Vehicles and Custom Build Vehicles. The company also develops and manufactures high end custom built vehicles. The company sells its vehicles online through electrameccanica.com Website. Electrameccanica Vehicles Corp. was founded in 2015 and is headquartered in Vancouver, Canada.

About Oshkosh

Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation services; and chassis and service parts sales. Its Defense segment provides heavy, medium, and light tactical wheeled vehicles and related services to the department of defense. The company's Fire & Emergency segment offers custom and commercial fire apparatus; and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides aircraft rescue and firefighting, snow removal, and broadcast and communication vehicles, as well as command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants for the concrete ready-mix industry; refuse collection vehicles to waste service industry; and field service vehicles and truck-mounted cranes for the construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Oshkosh Corporation provides its products through direct sales representatives, dealers, and distributors. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is headquartered in Oshkosh, Wisconsin.

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