Critical Comparison: Volcon (NASDAQ:VLCN) and Arrival (NASDAQ:ARVL)

Volcon (NASDAQ:VLCN – Get Rating) and Arrival (NASDAQ:ARVL – Get Rating) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Volcon and Arrival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-726.14%	-1,201.17%	-162.14%
Arrival	N/A	N/A	N/A

Insider & Institutional Ownership

4.2% of Volcon shares are held by institutional investors. Comparatively, 73.8% of Arrival shares are held by institutional investors. 18.8% of Volcon shares are held by company insiders. Comparatively, 0.5% of Arrival shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Volcon has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Arrival has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Volcon and Arrival, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	0	0	1	0	3.00
Arrival	0	1	1	0	2.50

Volcon presently has a consensus price target of $6.00, indicating a potential upside of 752.88%. Arrival has a consensus price target of $275.00, indicating a potential upside of 7,136.84%. Given Arrival’s higher probable upside, analysts clearly believe Arrival is more favorable than Volcon.

Earnings & Valuation

This table compares Volcon and Arrival’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volcon	$4.53 million	3.82	-$34.24 million	($1.35)	-0.52
Arrival	N/A	N/A	-$1.31 billion	N/A	N/A

Volcon has higher revenue and earnings than Arrival.

Summary

Arrival beats Volcon on 6 of the 10 factors compared between the two stocks.

About Volcon

(Get Rating)

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States and Latin America. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is headquartered in Round Rock, Texas.

About Arrival

(Get Rating)

Arrival engages in the research and development, and design of commercial electric vehicles (EVs), EVs components, robotic manufacturing processes for EVs, and associated software in the United Kingdom, the United States, Russia, and internationally. Its products portfolio includes commercial EV vans, buses, and cars. The company was formerly known as Arrival Group S.A. and changed its name to Arrival. The company was founded in 2015 and is based in Howald, Luxembourg. Arrival is a subsidiary of Kinetik S.à r.l.