Reviewing Vicinity Motor (NASDAQ:VEV) & Electrameccanica Vehicles (NASDAQ:SOLO)

Vicinity Motor (NASDAQ:VEVGet Free Report) and Electrameccanica Vehicles (NASDAQ:SOLOGet Free Report) are both small-cap consumer cyclical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Volatility & Risk

Vicinity Motor has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Electrameccanica Vehicles has a beta of 2.88, indicating that its stock price is 188% more volatile than the S&P 500.

Profitability

This table compares Vicinity Motor and Electrameccanica Vehicles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vicinity Motor -71.00% -33.12% -17.99%
Electrameccanica Vehicles -2,290.59% -68.16% -51.26%

Earnings and Valuation

This table compares Vicinity Motor and Electrameccanica Vehicles’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vicinity Motor $18.48 million 2.10 -$17.95 million ($0.26) -3.27
Electrameccanica Vehicles $6.81 million 4.51 -$123.70 million ($0.90) -0.29

Vicinity Motor has higher revenue and earnings than Electrameccanica Vehicles. Vicinity Motor is trading at a lower price-to-earnings ratio than Electrameccanica Vehicles, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.7% of Vicinity Motor shares are held by institutional investors. Comparatively, 2.0% of Electrameccanica Vehicles shares are held by institutional investors. 8.7% of Electrameccanica Vehicles shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Vicinity Motor and Electrameccanica Vehicles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vicinity Motor 0 0 0 0 N/A
Electrameccanica Vehicles 0 2 0 0 2.00

Vicinity Motor currently has a consensus target price of $3.00, suggesting a potential upside of 252.94%. Electrameccanica Vehicles has a consensus target price of $0.50, suggesting a potential upside of 94.17%. Given Vicinity Motor’s higher possible upside, equities analysts plainly believe Vicinity Motor is more favorable than Electrameccanica Vehicles.

Summary

Vicinity Motor beats Electrameccanica Vehicles on 7 of the 12 factors compared between the two stocks.

About Vicinity Motor

(Get Free Report)

Vicinity Motor Corp. designs, builds, and distributes a suite of transit buses for public and commercial use under the Vicinity brand in the United States and Canada. It offers electric, CNG, and clean diesel buses, as well as electric trucks and spare parts. The company was formerly known as Grande West Transportation Group Inc. and changed its name to Vicinity Motor Corp. in March 2021. The company was founded in 2008 and is headquartered in Aldergrove, Canada.

About Electrameccanica Vehicles

(Get Free Report)

Electrameccanica Vehicles Corp. develops, manufactures, and sells electric vehicles in the United States and Canada. Its flagship product is the SOLO, a single seat vehicle. The company is also developing four-wheeled eRoadster and Tofino. In addition, it provides services, repairs, and support services, as well as sale of parts and custom built vehicles. The company sells its vehicles through direct-to-consumer online marketing, as well as through retail store operations in the States of California, Arizona, and Oregon. Electrameccanica Vehicles Corp. was incorporated in 2015 and is headquartered in Burnaby, Canada.

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