REE Automotive (REE) & Its Rivals Critical Analysis

REE Automotive (NASDAQ:REE – Get Rating) is one of 64 publicly-traded companies in the “Motor vehicles & car bodies” industry, but how does it compare to its competitors? We will compare REE Automotive to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

23.7% of REE Automotive shares are owned by institutional investors. Comparatively, 53.8% of shares of all “Motor vehicles & car bodies” companies are owned by institutional investors. 6.0% of REE Automotive shares are owned by company insiders. Comparatively, 9.2% of shares of all “Motor vehicles & car bodies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

REE Automotive has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, REE Automotive’s competitors have a beta of 1.56, suggesting that their average stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for REE Automotive and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	2	0	3	0	2.20
REE Automotive Competitors	1071	2631	3036	165	2.33

REE Automotive presently has a consensus target price of $7.17, indicating a potential upside of 384.23%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 42.51%. Given REE Automotive’s higher probable upside, research analysts plainly believe REE Automotive is more favorable than its competitors.

Earnings & Valuation

This table compares REE Automotive and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
REE Automotive	$10,000.00	-$505.33 million	-0.75
REE Automotive Competitors	$44.91 billion	$3.11 billion	78.14

REE Automotive’s competitors have higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares REE Automotive and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	-209.95%	-183.48%
REE Automotive Competitors	-12,601.68%	-7.58%	-1.39%

Summary

REE Automotive competitors beat REE Automotive on 10 of the 13 factors compared.

About REE Automotive (Get Rating)

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

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