Fisker (NYSE:FSR) and Mercedes-Benz Group (OTCMKTS:DDAIF) Financial Analysis

Fisker (NYSE:FSRGet Rating) and Mercedes-Benz Group (OTCMKTS:DDAIFGet Rating) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fisker and Mercedes-Benz Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fisker 0 4 7 0 2.64
Mercedes-Benz Group 0 2 13 0 2.87

Fisker presently has a consensus target price of $18.80, suggesting a potential upside of 120.14%. Mercedes-Benz Group has a consensus target price of $89.72, suggesting a potential upside of 37.88%. Given Fisker’s higher possible upside, research analysts clearly believe Fisker is more favorable than Mercedes-Benz Group.

Risk & Volatility

Fisker has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Mercedes-Benz Group has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fisker and Mercedes-Benz Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fisker $110,000.00 23,041.70 -$471.34 million ($1.41) -6.06
Mercedes-Benz Group $198.74 billion N/A $27.22 billion $25.12 2.59

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

Profitability

This table compares Fisker and Mercedes-Benz Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fisker -438,496.81% -48.47% -28.61%
Mercedes-Benz Group 14.24% 19.67% 4.99%

Institutional and Insider Ownership

28.8% of Fisker shares are owned by institutional investors. 25.0% of Fisker shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Mercedes-Benz Group beats Fisker on 10 of the 13 factors compared between the two stocks.

About Fisker (Get Rating)

Fisker Inc. develops, manufactures, markets, leases, or sale of electric vehicles. The company is also involved in asset-light automotive business. It operates through The White Space, The Value Segment, and The Conservative Premium segments. In addition, the company offers fisker flexible platform agnostic design ,a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.

About Mercedes-Benz Group (Get Rating)

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. The company develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand, including the Mercedes-AMG, G-Class, Mercedes-Maybach, and Mercedes-EQ brands, as well as small cars under the smart brand; ecosystem of Mercedes-Benz under the Mercedes me brand; and vans under the Mercedes-Benz and Freightliner brands, as well as related spare parts and accessories. It also provides financing and leasing packages for end-customers and dealers; automotive insurance brokerage and banking services; car subscription and car rental, and fleet management, as well as digital services for charging and payment; and mobility services. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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