PACCAR (NASDAQ:PCAR) & Thunder Power (NASDAQ:AIEV) Critical Review

PACCAR (NASDAQ:PCAR) and Thunder Power (NASDAQ:AIEV) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for PACCAR and Thunder Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0	7	6	0	2.46
Thunder Power	0	0	0	0	0.00

PACCAR currently has a consensus price target of $121.95, indicating a potential upside of 15.09%. Given PACCAR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PACCAR is more favorable than Thunder Power.

Insider & Institutional Ownership

64.9% of PACCAR shares are owned by institutional investors. Comparatively, 65.0% of Thunder Power shares are owned by institutional investors. 2.0% of PACCAR shares are owned by insiders. Comparatively, 5.1% of Thunder Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

PACCAR has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Thunder Power has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Earnings and Valuation

This table compares PACCAR and Thunder Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66 billion	1.65	$4.16 billion	$7.91	13.40
Thunder Power	N/A	N/A	N/A	N/A	N/A

PACCAR has higher revenue and earnings than Thunder Power.

Profitability

This table compares PACCAR and Thunder Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PACCAR	12.36%	23.53%	9.89%
Thunder Power	N/A	N/A	N/A

Summary

PACCAR beats Thunder Power on 8 of the 10 factors compared between the two stocks.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.