PACCAR (NASDAQ:PCAR) versus Faraday Future Intelligent Electric (NASDAQ:FFIE) Critical Survey

PACCAR (NASDAQ:PCARGet Rating) and Faraday Future Intelligent Electric (NASDAQ:FFIEGet Rating) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings & Valuation

This table compares PACCAR and Faraday Future Intelligent Electric’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PACCAR $23.52 billion 1.21 $1.85 billion $5.68 14.42
Faraday Future Intelligent Electric N/A N/A -$516.51 million N/A N/A

PACCAR has higher revenue and earnings than Faraday Future Intelligent Electric.

Analyst Recommendations

This is a breakdown of current recommendations for PACCAR and Faraday Future Intelligent Electric, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 5 5 1 2.50
Faraday Future Intelligent Electric 0 1 0 0 2.00

PACCAR presently has a consensus price target of $98.25, suggesting a potential upside of 19.93%. Faraday Future Intelligent Electric has a consensus price target of $10.00, suggesting a potential upside of 300.00%. Given Faraday Future Intelligent Electric’s higher possible upside, analysts clearly believe Faraday Future Intelligent Electric is more favorable than PACCAR.

Insider & Institutional Ownership

63.6% of PACCAR shares are held by institutional investors. 2.1% of PACCAR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

PACCAR has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Profitability

This table compares PACCAR and Faraday Future Intelligent Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PACCAR 8.21% 17.20% 6.79%
Faraday Future Intelligent Electric N/A -103.18% -57.80%

Summary

PACCAR beats Faraday Future Intelligent Electric on 11 of the 12 factors compared between the two stocks.

PACCAR Company Profile (Get Rating)

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

Faraday Future Intelligent Electric Company Profile (Get Rating)

Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was incorporated in 2014 and is headquartered in Gardena, California.

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