Head-To-Head Comparison: NIO (NYSE:NIO) and Dongfeng Motor Group (OTCMKTS:DNFGY)

NIO (NYSE:NIO) and Dongfeng Motor Group (OTCMKTS:DNFGY) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

This table compares NIO and Dongfeng Motor Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$9.01 billion	1.68	-$3.06 billion	($1.60)	-4.53
Dongfeng Motor Group	$14.77 billion	0.71	$8.07 million	N/A	N/A

Dongfeng Motor Group has higher revenue and earnings than NIO.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NIO and Dongfeng Motor Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	4	0	2.15
Dongfeng Motor Group	0	0	0	1	4.00

NIO presently has a consensus price target of $6.75, suggesting a potential downside of 6.83%. Given NIO’s higher possible upside, research analysts clearly believe NIO is more favorable than Dongfeng Motor Group.

Risk & Volatility

NIO has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Dongfeng Motor Group has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Profitability

This table compares NIO and Dongfeng Motor Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-34.71%	-589.46%	-23.54%
Dongfeng Motor Group	N/A	N/A	N/A

Insider and Institutional Ownership

48.6% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Dongfeng Motor Group beats NIO on 7 of the 13 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 Dongfeng Motor Group

Dongfeng Motor Group Company Limited engages in the research, development, manufacture, and sale of commercial and passenger vehicles, engines, and other auto parts in the People's Republic of China. It operates in four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. The company's commercial vehicles include light, medium, and heavy-duty trucks, as well as pickup trucks and buses; passenger vehicles comprise sedans, MPVs, and SUVs; electric and new energy vehicles, and special commercial vehicles; and other automobile related products, as well as automotive parts and components, and automobile equipment. It also provides investment and advisory, car maintenance and repair, insurance agency, automotive technology development and system integration, and logistics, as well as financing and loan services. In addition, it is involved in trading of used car. The company is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited operates as a subsidiary of Dongfeng Motor Corporation.