Critical Analysis: Lion Electric (NYSE:LEV) & AB Volvo (publ) (OTCMKTS:VLVLY)

Lion Electric (NYSE:LEVGet Rating) and AB Volvo (publ) (OTCMKTS:VLVLYGet Rating) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Lion Electric has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, AB Volvo (publ) has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lion Electric and AB Volvo (publ), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lion Electric 1 3 7 0 2.55
AB Volvo (publ) 3 4 1 0 1.75

Lion Electric presently has a consensus price target of $15.55, indicating a potential upside of 116.27%. Given Lion Electric’s stronger consensus rating and higher probable upside, equities analysts plainly believe Lion Electric is more favorable than AB Volvo (publ).

Profitability

This table compares Lion Electric and AB Volvo (publ)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lion Electric -75.07% -25.74% -11.09%
AB Volvo (publ) 8.84% 26.45% 7.97%

Insider & Institutional Ownership

6.9% of Lion Electric shares are held by institutional investors. Comparatively, 0.1% of AB Volvo (publ) shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lion Electric and AB Volvo (publ)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lion Electric $57.71 million 23.61 -$43.33 million ($0.54) -13.31
AB Volvo (publ) $43.40 billion 0.78 $6.57 billion $1.88 8.86

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

Summary

AB Volvo (publ) beats Lion Electric on 7 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 AB Volvo (publ) (Get Rating)

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company offers trucks for long-haulage, construction, mining, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, Arquus, cellcentric, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis, as well as associated transport systems under the Prevost and Nova Bus brands. It also provides construction equipment, including excavators, articulated and rigid haulers, wheel loaders, road construction machines, pavers, and compactors under the brand names of Volvo, and SDLG Trucks. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-road applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repair, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop battery packs for its trucks; and an agreement with NVIDIA and Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

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