NIO (NYSE:NIO – Get Free Report) and Lotus Technology (NASDAQ:LOT – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares NIO and Lotus Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NIO | -33.41% | -113.83% | -19.82% |
| Lotus Technology | -87.61% | N/A | -38.53% |
Institutional and Insider Ownership
48.5% of NIO shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Comparatively, 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NIO | $65.73 billion | 0.11 | -$2.94 billion | ($1.53) | -2.30 |
| Lotus Technology | $1.01 billion | 0.88 | -$742.00 million | ($1.56) | -0.84 |
Lotus Technology has lower revenue, but higher earnings than NIO. NIO is trading at a lower price-to-earnings ratio than Lotus Technology, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NIO has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for NIO and Lotus Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NIO | 1 | 8 | 1 | 1 | 2.18 |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
NIO presently has a consensus price target of $5.05, suggesting a potential upside of 43.26%. Lotus Technology has a consensus price target of $7.00, suggesting a potential upside of 434.35%. Given Lotus Technology’s higher probable upside, analysts clearly believe Lotus Technology is more favorable than NIO.
Summary
NIO beats Lotus Technology on 9 of the 15 factors compared between the two stocks.
About NIO
NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.
About Lotus Technology
Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.
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