Critical Analysis: Carbon Streaming (OTCMKTS:OFSTF) & REE Automotive (NASDAQ:REE)

Carbon Streaming (OTCMKTS:OFSTF) and REE Automotive (NASDAQ:REE) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Carbon Streaming and REE Automotive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Streaming	0	0	0	0	0.00
REE Automotive	0	2	1	0	2.33

REE Automotive has a consensus target price of $8.1667, suggesting a potential upside of 1,065.50%. Given REE Automotive’s stronger consensus rating and higher possible upside, analysts plainly believe REE Automotive is more favorable than Carbon Streaming.

Insider & Institutional Ownership

12.7% of REE Automotive shares are owned by institutional investors. 2.4% of Carbon Streaming shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Carbon Streaming and REE Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Streaming	-24,943.55%	-3.61%	-3.44%
REE Automotive	N/A	-144.79%	-59.45%

Earnings and Valuation

This table compares Carbon Streaming and REE Automotive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Streaming	$640,000.00	40.73	-$67.37 million	($0.59)	-0.84
REE Automotive	$180,000.00	86.65	-$111.75 million	($7.19)	-0.10

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

Risk and Volatility

Carbon Streaming has a beta of -76.63, suggesting that its stock price is 7,763% less volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.67, suggesting that its stock price is 167% more volatile than the S&P 500.

Summary

REE Automotive beats Carbon Streaming on 8 of the 14 factors compared between the two stocks.

About Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.