Analyzing Harley-Davidson (NYSE:HOG) & VinFast Auto (NASDAQ:VFS)

VinFast Auto (NASDAQ:VFS) and Harley-Davidson (NYSE:HOG) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Profitability

This table compares VinFast Auto and Harley-Davidson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VinFast Auto	-132.71%	N/A	-50.60%
Harley-Davidson	5.76%	7.43%	1.97%

Earnings & Valuation

This table compares VinFast Auto and Harley-Davidson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VinFast Auto	$1.81 billion	4.18	-$3.18 billion	($1.42)	-2.27
Harley-Davidson	$4.66 billion	0.59	$455.36 million	$4.12	5.69

Harley-Davidson has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

VinFast Auto has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of Harley-Davidson shares are held by institutional investors. 16.2% of VinFast Auto shares are held by insiders. Comparatively, 0.9% of Harley-Davidson shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for VinFast Auto and Harley-Davidson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VinFast Auto	1	1	2	0	2.25
Harley-Davidson	2	4	2	0	2.00

VinFast Auto presently has a consensus price target of $5.75, suggesting a potential upside of 78.02%. Harley-Davidson has a consensus price target of $28.86, suggesting a potential upside of 23.16%. Given VinFast Auto’s stronger consensus rating and higher possible upside, analysts clearly believe VinFast Auto is more favorable than Harley-Davidson.

Summary

Harley-Davidson beats VinFast Auto on 9 of the 13 factors compared between the two stocks.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

About Harley-Davidson

Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.