Comparing VinFast Auto (NASDAQ:VFS) & Lucid Group (NASDAQ:LCID)

VinFast Auto (NASDAQ:VFS) and Lucid Group (NASDAQ:LCID) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

VinFast Auto has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Lucid Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares VinFast Auto and Lucid Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VinFast Auto	-132.71%	N/A	-50.60%
Lucid Group	-259.57%	-79.40%	-26.63%

Insider & Institutional Ownership

75.2% of Lucid Group shares are held by institutional investors. 16.2% of VinFast Auto shares are held by company insiders. Comparatively, 64.0% of Lucid Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for VinFast Auto and Lucid Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VinFast Auto	0	1	2	0	2.67
Lucid Group	2	8	2	0	2.00

VinFast Auto currently has a consensus target price of $5.75, suggesting a potential upside of 74.24%. Lucid Group has a consensus target price of $23.31, suggesting a potential upside of 20.21%. Given VinFast Auto’s stronger consensus rating and higher possible upside, equities analysts plainly believe VinFast Auto is more favorable than Lucid Group.

Earnings and Valuation

This table compares VinFast Auto and Lucid Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VinFast Auto	$1.81 billion	4.27	-$3.18 billion	($1.42)	-2.32
Lucid Group	$807.83 million	7.37	-$2.71 billion	($11.50)	-1.69

Lucid Group has lower revenue, but higher earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Lucid Group, indicating that it is currently the more affordable of the two stocks.

Summary

VinFast Auto beats Lucid Group on 7 of the 13 factors compared between the two stocks.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

About Lucid Group

Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.