In this article, we will delve into a comprehensive analysis of Lion Electric and Electrameccanica Vehicles. By examining their valuation, ownership, risk, dividends, earnings, profitability, and analyst recommendations, we aim to provide you with valuable insights into these two small-cap auto/tires/trucks companies.
Valuation Comparison
When it comes to valuation, Lion Electric has a consensus price target of $3.49, indicating a potential upside of 100.29%. On the other hand, Electrameccanica Vehicles has a consensus price target of $0.60, indicating a potential upside of 50.49%. This suggests that analysts believe Lion Electric has a more favorable valuation compared to Electrameccanica Vehicles.
It's important to consider these valuation metrics when making investment decisions. By understanding the potential upside, investors can gauge the attractiveness of each company's stock.
Institutional Ownership
Institutional ownership plays a significant role in the stock market. In the case of Lion Electric, 51.1% of its shares are owned by institutional investors, while only 2.0% of Electrameccanica Vehicles shares are owned by institutional investors. This indicates a higher level of confidence from institutional investors in Lion Electric.
Furthermore, it's worth noting that 16.6% of Lion Electric shares are owned by company insiders, compared to 8.7% of Electrameccanica Vehicles shares. Insider ownership can provide insights into the company's long-term prospects and management's confidence in its future performance.
Risk Analysis
Understanding the risk factors is crucial for investors. Lion Electric has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. On the other hand, Electrameccanica Vehicles has a beta of 2.94, suggesting that its stock price is 194% more volatile than the S&P 500.
Investors should carefully consider their risk tolerance and investment goals when evaluating these companies. Higher volatility can lead to greater potential returns but also comes with increased risk.
Profitability and Earnings
When it comes to profitability, Lion Electric outperforms Electrameccanica Vehicles. Lion Electric has higher net margins, return on equity, and return on assets compared to Electrameccanica Vehicles.
In terms of earnings, Lion Electric also surpasses Electrameccanica Vehicles. Lion Electric has higher revenue and earnings, making it a more financially robust company.
Investors looking for companies with strong profitability and earnings potential may find Lion Electric to be a more attractive option.
Analyst Recommendations
Analyst recommendations can provide valuable insights into the market sentiment towards a stock. According to analysts, Lion Electric is more favorable than Electrameccanica Vehicles.
With a consensus price target indicating a potential upside of 100.29%, Lion Electric is seen as a promising investment opportunity. On the other hand, Electrameccanica Vehicles has a consensus price target indicating a potential upside of 50.49%.
Investors should consider these analyst recommendations alongside other factors when making investment decisions.