Comparing Lotus Technology (NASDAQ:LOT) & NIO (NYSE:NIO)

Lotus Technology (NASDAQ:LOT) and NIO (NYSE:NIO) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Lotus Technology and NIO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	0	1	0	0	2.00
NIO	1	8	1	1	2.18

Lotus Technology presently has a consensus target price of $7.00, suggesting a potential upside of 493.22%. NIO has a consensus target price of $5.05, suggesting a potential upside of 44.37%. Given Lotus Technology’s higher probable upside, equities research analysts clearly believe Lotus Technology is more favorable than NIO.

Valuation and Earnings

This table compares Lotus Technology and NIO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Technology	$1.01 billion	0.79	-$742.00 million	($1.56)	-0.76
NIO	$65.73 billion	0.11	-$2.94 billion	($1.53)	-2.29

Lotus Technology has higher earnings, but lower revenue than NIO. NIO is trading at a lower price-to-earnings ratio than Lotus Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lotus Technology and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	-87.61%	N/A	-38.53%
NIO	-33.41%	-113.83%	-19.82%

Insider & Institutional Ownership

63.4% of Lotus Technology shares are owned by institutional investors. Comparatively, 48.5% of NIO shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by company insiders. Comparatively, 1.0% of NIO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Lotus Technology has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, NIO has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Summary

NIO beats Lotus Technology on 9 of the 15 factors compared between the two stocks.

About Lotus Technology

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

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.