Critical Review: Fisker (NYSE:FSRN) and Stellantis (NYSE:STLA)

Fisker (NYSE:FSRN) and Stellantis (NYSE:STLA) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Fisker and Stellantis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fisker	0	0	0	0	N/A
Stellantis	1	5	7	0	2.46

Stellantis has a consensus target price of $30.28, indicating a potential upside of 21.78%. Given Stellantis’ higher probable upside, analysts clearly believe Stellantis is more favorable than Fisker.

Profitability

This table compares Fisker and Stellantis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fisker	-278.72%	-110.93%	-23.14%
Stellantis	N/A	N/A	N/A

Volatility & Risk

Fisker has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Stellantis has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fisker and Stellantis’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fisker	$272.89 million	0.05	-$761.99 million	($2.22)	-0.02
Stellantis	$205.13 billion	0.38	$20.13 billion	N/A	N/A

Stellantis has higher revenue and earnings than Fisker.

Insider and Institutional Ownership

33.6% of Fisker shares are owned by institutional investors. Comparatively, 59.5% of Stellantis shares are owned by institutional investors. 26.3% of Fisker shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Stellantis beats Fisker on 10 of the 11 factors compared between the two stocks.

About Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.