Fly-E Group (NASDAQ:FLYE) and Toyota Motor (NYSE:TM) Critical Contrast

Toyota Motor (NYSE:TM) and Fly-E Group (NASDAQ:FLYE) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Insider and Institutional Ownership

1.5% of Toyota Motor shares are owned by institutional investors. 4.7% of Fly-E Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Toyota Motor has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Fly-E Group has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Toyota Motor and Fly-E Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	0	4	1	2	2.71
Fly-E Group	1	0	0	0	1.00

Toyota Motor currently has a consensus target price of $290.00, suggesting a potential upside of 46.96%. Given Toyota Motor’s stronger consensus rating and higher possible upside, research analysts clearly believe Toyota Motor is more favorable than Fly-E Group.

Earnings and Valuation

This table compares Toyota Motor and Fly-E Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$336.70 billion	0.76	$25.40 billion	$22.68	8.70
Fly-E Group	$19.06 million	0.17	-$13.06 million	($8.01)	-0.25

Toyota Motor has higher revenue and earnings than Fly-E Group. Fly-E Group is trading at a lower price-to-earnings ratio than Toyota Motor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Toyota Motor and Fly-E Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	8.61%	11.21%	4.34%
Fly-E Group	N/A	N/A	N/A

Summary

Toyota Motor beats Fly-E Group on 14 of the 15 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

About Fly-E Group

Fly-E Group, Inc. engages in the designing, installing, and selling of smart electric motorcycles (e-motorcycles), electric bikes, electric scooters, and related accessories under the Fly E-Bike brand in the United States and Canada. It offers e-mopeds, e-motorcycles, e-tricycles, e-bikes, and e-scooters; and traditional bikes. The company also provides accessories and spare parts, including raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, locks, and branded apparel; and upgrade components for wheels, shock absorbers, brake calipers, and carbon fiber body panels. It also operates retail stores; and offers repair, maintenance, bodywork, and other value added services. The company was founded in 2018 and is based in Flushing, New York.