Reviewing Polestar Automotive Holding UK (NASDAQ:PSNY) and BYD (OTCMKTS:BYDDY)

Polestar Automotive Holding UK (NASDAQ:PSNY) and BYD (OTCMKTS:BYDDY) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Profitability

This table compares Polestar Automotive Holding UK and BYD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polestar Automotive Holding UK	N/A	N/A	N/A
BYD	5.71%	22.70%	5.86%

Insider and Institutional Ownership

1.0% of Polestar Automotive Holding UK shares are held by institutional investors. Comparatively, 0.0% of BYD shares are held by institutional investors. 0.0% of Polestar Automotive Holding UK shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Polestar Automotive Holding UK and BYD”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polestar Automotive Holding UK	$2.03 billion	1.44	-$2.05 billion	($0.57)	-2.40
BYD	$108.10 billion	1.13	$5.60 billion	$0.71	19.23

BYD has higher revenue and earnings than Polestar Automotive Holding UK. Polestar Automotive Holding UK is trading at a lower price-to-earnings ratio than BYD, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Polestar Automotive Holding UK has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, BYD has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Polestar Automotive Holding UK and BYD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polestar Automotive Holding UK	0	4	0	0	2.00
BYD	0	0	0	0	0.00

Polestar Automotive Holding UK presently has a consensus price target of $1.81, suggesting a potential upside of 32.30%. Given Polestar Automotive Holding UK’s stronger consensus rating and higher possible upside, analysts clearly believe Polestar Automotive Holding UK is more favorable than BYD.

Summary

BYD beats Polestar Automotive Holding UK on 7 of the 13 factors compared between the two stocks.

About Polestar Automotive Holding UK

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

About BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.