Critical Analysis: Volcon (EMPD) versus The Competition

Volcon (NASDAQ:EMPD) is one of 26 public companies in the “AUTO – DOMESTIC” industry, but how does it contrast to its competitors? We will compare Volcon to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, profitability and valuation.

Institutional & Insider Ownership

50.6% of shares of all “AUTO – DOMESTIC” companies are owned by institutional investors. 0.1% of Volcon shares are owned by insiders. Comparatively, 11.8% of shares of all “AUTO – DOMESTIC” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Volcon has a beta of -0.62, suggesting that its share price is 162% less volatile than the S&P 500. Comparatively, Volcon’s competitors have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Volcon and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	1	0	0	1	2.50
Volcon Competitors	854	2300	2601	133	2.34

As a group, “AUTO – DOMESTIC” companies have a potential downside of 1.82%. Given Volcon’s competitors higher probable upside, analysts plainly believe Volcon has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Volcon and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Volcon	$3.50 million	-$45.51 million	-0.03
Volcon Competitors	$23.89 billion	$510.60 million	15.11

Volcon’s competitors have higher revenue and earnings than Volcon. Volcon is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Volcon and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-720.28%	-282.87%	-180.44%
Volcon Competitors	-131.78%	-40.71%	-21.71%

Summary

Volcon competitors beat Volcon on 11 of the 13 factors compared.

Volcon Company Profile

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.