Rivian Automotive (NASDAQ:RIVN) & Nikola (NASDAQ:NKLA) Head to Head Review

Rivian Automotive (NASDAQ:RIVNGet Rating) and Nikola (NASDAQ:NKLAGet Rating) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Rivian Automotive and Nikola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rivian Automotive N/A N/A N/A
Nikola N/A -100.85% -74.82%

Earnings and Valuation

This table compares Rivian Automotive and Nikola’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rivian Automotive $55.00 million 475.98 -$4.69 billion N/A N/A
Nikola $90,000.00 26,718.87 -$690.44 million ($1.80) -3.17

Nikola has lower revenue, but higher earnings than Rivian Automotive.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rivian Automotive and Nikola, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rivian Automotive 1 6 12 0 2.58
Nikola 0 6 1 0 2.14

Rivian Automotive currently has a consensus target price of 70.41, indicating a potential upside of 142.21%. Nikola has a consensus target price of $11.25, indicating a potential upside of 97.02%. Given Rivian Automotive’s stronger consensus rating and higher possible upside, analysts clearly believe Rivian Automotive is more favorable than Nikola.

Insider & Institutional Ownership

78.7% of Rivian Automotive shares are owned by institutional investors. Comparatively, 48.3% of Nikola shares are owned by institutional investors. 2.3% of Rivian Automotive shares are owned by insiders. Comparatively, 18.3% of Nikola shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Rivian Automotive beats Nikola on 7 of the 10 factors compared between the two stocks.

About Rivian Automotive (Get Rating)

Rivian Automotive, Inc. designs, develops, manufactures, and sells electric vehicles and accessories. The company offers five-passenger pickup trucks and sports utility vehicles. It provides Rivian Commercial Vehicle platform for electric Delivery Van with collaboration with Amazon.com. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in San Jose, California.

About Nikola (Get Rating)

Nikola Corporation operates as a technology innovator and integrator that works to develop energy and transportation solutions. It operates through two business units, Truck and Energy. The Truck business unit develops and commercializes battery hydrogen-electric and battery-electric semi-trucks to the trucking sector. The Energy business unit develops and constructs a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. The company also assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation is headquartered in Phoenix, Arizona.

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