Critical Review: Lion Electric (NYSE:LEV) vs. Cenntro Electric Group (NASDAQ:CENN)

Cenntro Electric Group (NASDAQ:CENN – Get Rating) and Lion Electric (NYSE:LEV – Get Rating) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Cenntro Electric Group has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Lion Electric has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Cenntro Electric Group and Lion Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenntro Electric Group	0	0	0	0	N/A
Lion Electric	1	5	6	0	2.42

Lion Electric has a consensus target price of $5.00, suggesting a potential upside of 143.90%. Given Lion Electric’s higher probable upside, analysts clearly believe Lion Electric is more favorable than Cenntro Electric Group.

Valuation and Earnings

This table compares Cenntro Electric Group and Lion Electric’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenntro Electric Group	$11.16 million	7.73	-$16.42 million	N/A	N/A
Lion Electric	$139.91 million	3.20	$17.78 million	$0.01	205.21

Lion Electric has higher revenue and earnings than Cenntro Electric Group.

Institutional and Insider Ownership

8.2% of Cenntro Electric Group shares are held by institutional investors. Comparatively, 43.7% of Lion Electric shares are held by institutional investors. 30.9% of Cenntro Electric Group shares are held by company insiders. Comparatively, 16.6% of Lion Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Cenntro Electric Group and Lion Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cenntro Electric Group	N/A	N/A	N/A
Lion Electric	0.05%	-17.77%	-11.36%

Summary

Lion Electric beats Cenntro Electric Group on 7 of the 11 factors compared between the two stocks.

About Cenntro Electric Group

(Get Rating)

Cenntro Electric Group Ltd. is an EV technology company that designs and manufactures electric light and medium duty commercial vehicles. The company’s ECVs are designed to serve a variety of corporate and governmental organizations in support of city services, last-mile delivery and other commercial applications. Its business model allows the firm to design, manufacture, assemble, homologate and sell ECVs to third parties for distribution and service to end-users and also distribute manufactured vehicle kits, which are then assembled, homologated, sold and serviced by third parties in their respective markets. The firm operates through the following brands: Cenntro, Metro, Neibor, Logistar, and Terramak. The company was founded on May 11, 2017 and is headquartered in Freehold, NJ.

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.