Contrasting XPENG (NYSE:XPEV) and Faraday Future Intelligent Electric (NASDAQ:FFAI)

Faraday Future Intelligent Electric (NASDAQ:FFAI) and XPENG (NYSE:XPEV) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Faraday Future Intelligent Electric has a beta of 5.81, indicating that its stock price is 481% more volatile than the S&P 500. Comparatively, XPENG has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Faraday Future Intelligent Electric and XPENG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Faraday Future Intelligent Electric	$1.51 million	2.06	-$390.70 million	($223.10)	-0.00
XPENG	$75.41 billion	0.12	-$158.50 million	($0.48)	-19.26

XPENG has higher revenue and earnings than Faraday Future Intelligent Electric. XPENG is trading at a lower price-to-earnings ratio than Faraday Future Intelligent Electric, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Faraday Future Intelligent Electric and XPENG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Faraday Future Intelligent Electric	-21,837.97%	-2,531.03%	-100.65%
XPENG	-4.19%	-10.99%	-3.15%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Faraday Future Intelligent Electric and XPENG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Faraday Future Intelligent Electric	1	0	1	0	2.00
XPENG	4	2	4	1	2.18

Faraday Future Intelligent Electric currently has a consensus target price of $750.00, indicating a potential upside of 92,526.90%. XPENG has a consensus target price of $22.09, indicating a potential upside of 138.91%. Given Faraday Future Intelligent Electric’s higher possible upside, analysts clearly believe Faraday Future Intelligent Electric is more favorable than XPENG.

Insider and Institutional Ownership

71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 21.1% of XPENG shares are held by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are held by insiders. Comparatively, 27.6% of XPENG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

XPENG beats Faraday Future Intelligent Electric on 10 of the 15 factors compared between the two stocks.

About Faraday Future Intelligent Electric

Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.

About XPENG

XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People's Republic of China. It offers SUVs under the G3, G3i, and G9 names; four-door sports sedans under the P7 and P7i names; and family sedans under the P5 name. The company also provides sales contracts, super charging, maintenance, technical support, auto financing, insurance, technology support, ride-hailing, automotive loan referral, and other services, as well as vehicle leasing and insurance agency services. In addition, it offers advanced driver-assistance system technology and in-car intelligent operating system; and vehicle systems comprising powertrains, and the electrical and electronic architecture. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, the People's Republic of China.