Critical Analysis: Fox Factory (NASDAQ:FOXF) vs. Lucid Group (NASDAQ:LCID)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fox Factory	$1.44 billion	0.64	$6.55 million	($6.05)	-3.63
Lucid Group	$807.83 million	6.83	-$2.71 billion	($11.50)	-1.56

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

Analyst Recommendations

This is a summary of recent ratings for Fox Factory and Lucid Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fox Factory	1	2	3	0	2.33
Lucid Group	3	8	2	0	1.92

Fox Factory presently has a consensus price target of $32.40, indicating a potential upside of 47.54%. Lucid Group has a consensus price target of $23.74, indicating a potential upside of 32.18%. Given Fox Factory’s stronger consensus rating and higher possible upside, research analysts plainly believe Fox Factory is more favorable than Lucid Group.

Volatility and Risk

Fox Factory has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Lucid Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Fox Factory and Lucid Group’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%
Lucid Group	-224.99%	-75.99%	-25.93%

Institutional & Insider Ownership

75.2% of Lucid Group shares are held by institutional investors. 0.5% of Fox Factory shares are held by insiders. Comparatively, 64.0% of Lucid Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Fox Factory beats Lucid Group on 10 of the 14 factors compared between the two stocks.

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 Lucid Group

Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.