NIO (NYSE:NIO – Get Free Report) and Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
NIO has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Institutional and Insider Ownership
48.5% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NIO | 1 | 8 | 1 | 1 | 2.18 |
| Mercedes-Benz Group | 0 | 5 | 0 | 0 | 2.00 |
NIO currently has a consensus price target of $5.17, suggesting a potential upside of 49.54%. Given NIO’s stronger consensus rating and higher probable upside, research analysts clearly believe NIO is more favorable than Mercedes-Benz Group.
Valuation and Earnings
This table compares NIO and Mercedes-Benz Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NIO | $65.73 billion | 0.11 | -$2.94 billion | ($1.53) | -2.26 |
| Mercedes-Benz Group | $157.56 billion | 0.32 | $15.43 billion | C$2.76 | 4.78 |
Mercedes-Benz Group has higher revenue and earnings than NIO. NIO is trading at a lower price-to-earnings ratio than Mercedes-Benz Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NIO and Mercedes-Benz Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NIO | -33.41% | -113.83% | -19.82% |
| Mercedes-Benz Group | 6.99% | 10.90% | 3.84% |
Summary
Mercedes-Benz Group beats NIO on 8 of the 15 factors compared between the two stocks.
About NIO
NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.
About Mercedes-Benz Group
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
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