Forza X1 (NASDAQ:FRZA) & Vision Marine Technologies (NASDAQ:VMAR) Critical Review

Forza X1 (NASDAQ:FRZA – Get Rating) and Vision Marine Technologies (NASDAQ:VMAR – Get Rating) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

1.5% of Forza X1 shares are owned by institutional investors. Comparatively, 1.3% of Vision Marine Technologies shares are owned by institutional investors. 23.0% of Forza X1 shares are owned by insiders. Comparatively, 40.4% of Vision Marine Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Forza X1 and Vision Marine Technologies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forza X1	N/A	N/A	-$3.63 million	($0.55)	-2.36
Vision Marine Technologies	$5.78 million	6.53	-$10.31 million	($1.73)	-2.28

Forza X1 has higher earnings, but lower revenue than Vision Marine Technologies. Forza X1 is trading at a lower price-to-earnings ratio than Vision Marine Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Forza X1 and Vision Marine Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forza X1	N/A	-49.44%	-48.12%
Vision Marine Technologies	-250.45%	-79.83%	-59.95%

Analyst Ratings

This is a summary of recent ratings and price targets for Forza X1 and Vision Marine Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forza X1	0	0	0	0	N/A
Vision Marine Technologies	0	0	0	0	N/A

Summary

Forza X1 beats Vision Marine Technologies on 6 of the 9 factors compared between the two stocks.

About Forza X1

(Get Rating)

Forza X1, Inc. focuses on designing, developing, and manufacturing fully electric boats in the United States. It intends to offer its products through a vertically integrated direct-to-consumer system. The company was incorporated in 2021 and is based in Fort Pierce, Florida. Forza X1, Inc. operates as a subsidiary of Twin Vee Powercats Co.

About Vision Marine Technologies

(Get Rating)

Vision Marine Technologies Inc. designs, develops, and manufactures electric outboard powertrain systems and electric boats in Canada, the United States, and internationally. It operates in two segments, Sale of Electric Boats and Rental of Electric Boats. The company offers outboard motors, boat parts, and related maintenance services. In addition, it provides its products through retail e-commerce website, as well as rental boating companies, distributors, and dealers. Vision Marine Technologies Inc. was formerly known as Riopel Marine Inc. and changed its name to Vision Marine Technologies Inc. in April 2020. The company serves original equipment manufacturers and end-consumers. The company was founded in 1995 and is headquartered in Boisbriand, Canada.