Contrasting Thunder Power (NASDAQ:AIEV) & Nikola (NASDAQ:NKLA)

Thunder Power (NASDAQ:AIEV) and Nikola (NASDAQ:NKLA) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Profitability

This table compares Thunder Power and Nikola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Power	N/A	N/A	N/A
Nikola	-840.44%	-95.73%	-46.23%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Thunder Power and Nikola, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Power	0	0	0	0	0.00
Nikola	0	3	1	0	2.25

Nikola has a consensus price target of $6.00, suggesting a potential upside of 3,178.69%. Given Nikola’s stronger consensus rating and higher possible upside, analysts plainly believe Nikola is more favorable than Thunder Power.

Risk & Volatility

Thunder Power has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Nikola has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Insider and Institutional Ownership

65.0% of Thunder Power shares are owned by institutional investors. Comparatively, 37.4% of Nikola shares are owned by institutional investors. 5.1% of Thunder Power shares are owned by insiders. Comparatively, 0.7% of Nikola shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Thunder Power and Nikola”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Power	N/A	N/A	N/A	N/A	N/A
Nikola	$75.53 million	0.15	-$966.28 million	($14.26)	-0.01

Thunder Power has higher earnings, but lower revenue than Nikola.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.

About Nikola

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.