Comparing Lion Electric (NYSE:LEV) and Lordstown Motors (NASDAQ:RIDE)

Lion Electric (NYSE:LEVGet Rating) and Lordstown Motors (NASDAQ:RIDEGet Rating) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

43.7% of Lion Electric shares are owned by institutional investors. Comparatively, 30.4% of Lordstown Motors shares are owned by institutional investors. 16.6% of Lion Electric shares are owned by insiders. Comparatively, 2.7% of Lordstown Motors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Lion Electric has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, Lordstown Motors has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lion Electric and Lordstown Motors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lion Electric $57.71 million 8.43 -$43.33 million $0.25 10.00
Lordstown Motors N/A N/A -$410.37 million ($1.29) -1.01

Lion Electric has higher revenue and earnings than Lordstown Motors. Lordstown Motors is trading at a lower price-to-earnings ratio than Lion Electric, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Lion Electric and Lordstown Motors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lion Electric 1 4 7 0 2.50
Lordstown Motors 3 0 0 0 1.00

Lion Electric currently has a consensus target price of $7.13, indicating a potential upside of 185.00%. Lordstown Motors has a consensus target price of $2.38, indicating a potential upside of 82.69%. Given Lion Electric’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lion Electric is more favorable than Lordstown Motors.

Profitability

This table compares Lion Electric and Lordstown Motors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lion Electric 43.68% -10.19% -6.71%
Lordstown Motors N/A -55.11% -43.72%

Summary

Lion Electric beats Lordstown Motors on 13 of the 13 factors compared between the two stocks.

About Lion Electric

(Get Rating)

The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. Its products include battery systems, chassis, bus bodies, and truck cabins. The company also distributes truck and bus parts, as well as accessories. The Lion Electric Company was incorporated in 2008 and is based in Saint-Jérôme, Canada.

About Lordstown Motors

(Get Rating)

Lordstown Motors Corp. develops, manufactures, and sells Endurance, an electric full-size pickup truck for fleet customers. The company was founded in 2019 and is based in Lordstown, Ohio.

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