Analyzing Fox Factory (NASDAQ:FOXF) and Rivian Automotive (NASDAQ:RIVN)

Fox Factory (NASDAQ:FOXF) and Rivian Automotive (NASDAQ:RIVN) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares Fox Factory and Rivian Automotive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fox Factory	$1.46 billion	0.40	$6.55 million	($6.18)	-2.25
Rivian Automotive	$4.97 billion	3.68	-$4.75 billion	($3.11)	-4.79

Fox Factory has higher earnings, but lower revenue than Rivian Automotive. Rivian Automotive is trading at a lower price-to-earnings ratio than Fox Factory, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Fox Factory and Rivian Automotive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fox Factory	2	2	3	0	2.14
Rivian Automotive	5	16	6	0	2.04

Fox Factory presently has a consensus target price of $32.40, suggesting a potential upside of 133.43%. Rivian Automotive has a consensus target price of $14.34, suggesting a potential downside of 3.84%. Given Fox Factory’s stronger consensus rating and higher possible upside, research analysts plainly believe Fox Factory is more favorable than Rivian Automotive.

Volatility & Risk

Fox Factory has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Rivian Automotive has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

66.3% of Rivian Automotive shares are owned by institutional investors. 0.3% of Fox Factory shares are owned by company insiders. Comparatively, 2.2% of Rivian Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Fox Factory and Rivian Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fox Factory	-17.50%	5.03%	2.56%
Rivian Automotive	-61.34%	-57.33%	-22.25%

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.

About Rivian Automotive

Rivian Automotive, Inc., together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name. It provides consumer services, such as digital financing and leasing, telematics-based insurance, vehicle maintenance and repair services, software services, and charging solutions. In addition, the company designs, develops, manufactures, and operates the Rivian Adventure Network Direct Current fast chargers, and offers access to Combined Charging Standard, as well as FleetOS, a proprietary, end-to-end centralized fleet management subscription platform. Further, it offers Rivian Commercial Van platform for Electric Delivery Van with collaboration with Amazon.com, Inc. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.