Lotus Technology (NASDAQ:LOT – Get Free Report ) and Nikola (NASDAQ:NKLA – Get Free Report ) are both small car/tire/truck companies, but which is the better investment? We compare the two companies based on earnings, dividends, valuation, profitability, institutional holdings, risk and analyst recommendations.
Risk and Volatility
Lotus Technology's beta is -0.09, indicating that the company's stock price is 109% less volatile than the S&P 500. In comparison, Nikola's beta is 2.1, indicating that the company's stock price is 110% more volatile than the S&P 500.
Profitability
This table compares the net profit margins, return on equity, and return on assets of Lotus Technology and Nikola.
| Net income | Return on Equity | Return on Assets | |
| Lotus Technology | N/A | -0.62% | -39.40% |
| Nicola | N/A | -113.18% | -58.40% |
Ratings and Revenue
This table compares Lotus Technology and Nikola's total revenue, earnings per share (EPS), and valuation.
| Earnings | Price/Sales Ratio | Net income | Earnings per Share | Price Earnings Ratio | |
| Lotus Technology | $679.01 million | 0.43 | -$742 million | ($0.48) | -20.83 |
| Nicola | $32.66 million | 21.88 | -$966.28 million | ($1.06) | -0.50 |
Lotus Technology has higher revenues and profits than Nikola. Lotus Technology trades at a lower price-to-earnings multiple than Nikola, making Lotus Technology the more affordable of the two stocks right now.
Institutional and insider ownership
63.4% of Lotus Technology's shares are owned by institutional investors, compared to 37.4% of Nikola's shares. 0.2% of Lotus Technology's shares are owned by insiders, compared to 0.7% of Nikola's shares. Strong institutional ownership suggests that large asset managers, hedge funds, and endowments believe the company is poised for long-term growth.
Analyst Recommendations
Here's a breakdown of Lotus Technology and Nikola's current valuations and target prices, as reported by MarketBeat.
| Sell rating | Ratings on hold | Purchase Rating | Strong Buy Rating | Evaluation score | |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
| Nicola | 0 | 2 | 2 | 0 | 2.50 |
Lotus Technology's current consensus price target is $7.00, indicating a downside potential of 30.00%, while Nikola's consensus price target is $1.33, indicating an upside potential of 153.10%. With Nikola's higher consensus rating and greater upside potential, analysts clearly consider Nikola a better bet than Lotus Technology.
summary
Comparing the two stocks, Nikola outperforms Lotus Technology on 7 out of 13 factors.
About Lotus Technology
(Get your free report)
Lotus Technology Inc. designs, develops, and sells battery electric lifestyle vehicles and sports cars worldwide. The company markets its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.
About Nikola
(Get your free report)
Nikola Corporation operates as a technology innovation and integration company that develops energy and transportation solutions in the United States and internationally. The company operates in the truck and energy sector. The company commercializes battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) in the truck sector. In addition, the company has developed a network of hydrogen fueling stations and offers BEV charging solutions for its FCEV and BEV customers as well as other third-party customers. In addition, the company's products include Nikola Tre Class 8 trucks and Nikola Class 8 FCEVs. In addition, the company works with business partners and suppliers to assemble, integrate, and commission its vehicles. Nikola Corporation was founded in 2015 and is headquartered in Phoenix, Arizona.
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