Critical Contrast: Harley-Davidson (NYSE:HOG) versus Stellantis (NYSE:STLA)

Stellantis (NYSE:STLA) and Harley-Davidson (NYSE:HOG) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of recent recommendations for Stellantis and Harley-Davidson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stellantis	6	10	1	2	1.95
Harley-Davidson	2	5	4	1	2.33

Stellantis presently has a consensus price target of $8.66, suggesting a potential upside of 55.76%. Harley-Davidson has a consensus price target of $27.00, suggesting a potential downside of 4.56%. Given Stellantis’ higher probable upside, equities research analysts clearly believe Stellantis is more favorable than Harley-Davidson.

Earnings & Valuation

This table compares Stellantis and Harley-Davidson”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stellantis	$173.64 billion	0.12	-$25.31 billion	$0.39	14.26
Harley-Davidson	$4.47 billion	0.66	$338.74 million	$1.63	17.36

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

Profitability

This table compares Stellantis and Harley-Davidson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stellantis	N/A	N/A	N/A
Harley-Davidson	4.78%	6.28%	2.45%

Volatility and Risk

Stellantis has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

59.5% of Stellantis shares are held by institutional investors. Comparatively, 85.1% of Harley-Davidson shares are held by institutional investors. 1.0% of Harley-Davidson shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Harley-Davidson beats Stellantis on 11 of the 15 factors compared between the two stocks.

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.

About Harley-Davidson

Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.