Financial Review: Rivian Automotive (NASDAQ:RIVN) and Volvo Car AB (publ.) (OTCMKTS:VLVOF)

Volvo Car AB (publ.) (OTCMKTS:VLVOFGet Free Report) and Rivian Automotive (NASDAQ:RIVNGet Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

66.2% of Rivian Automotive shares are held by institutional investors. 1.5% of Rivian Automotive shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Volvo Car AB (publ.) and Rivian Automotive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Volvo Car AB (publ.) 3 1 0 0 1.25
Rivian Automotive 7 8 12 0 2.19

Rivian Automotive has a consensus price target of $18.95, indicating a potential upside of 23.40%. Given Rivian Automotive’s stronger consensus rating and higher possible upside, analysts clearly believe Rivian Automotive is more favorable than Volvo Car AB (publ.).

Profitability

This table compares Volvo Car AB (publ.) and Rivian Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Volvo Car AB (publ.) N/A N/A N/A
Rivian Automotive -54.96% -73.90% -23.91%

Earnings and Valuation

This table compares Volvo Car AB (publ.) and Rivian Automotive”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Volvo Car AB (publ.) N/A N/A N/A N/A N/A
Rivian Automotive $5.88 billion 3.78 -$3.65 billion ($2.58) -5.95

Volvo Car AB (publ.) has higher earnings, but lower revenue than Rivian Automotive.

Summary

Rivian Automotive beats Volvo Car AB (publ.) on 6 of the 9 factors compared between the two stocks.

About Volvo Car AB (publ.)

(Get Free Report)

Volvo Car AB (publ.) designs, develops, manufactures, markets, assembles, and sells passenger cars in Europe, China, the United States, and internationally. The company offers sedans and SUV vehicles under the Volvo brand; and electric cars under the Volvo and Polestar brands. It also provides vehicle parts and accessories, as well as sells online. The company was founded in 1927 and is headquartered in Gothenburg, Sweden. Volvo Car AB (publ.) is a subsidiary of Geely Sweden Holdings AB.

About Rivian Automotive

(Get Free Report)

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.

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