Financial Analysis: REE Automotive (REE) versus Its Rivals

REE Automotive (NASDAQ:REEGet Rating) is one of 64 public companies in the “Motor vehicles & car bodies” industry, but how does it weigh in compared to its competitors? We will compare REE Automotive to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Insider & Institutional Ownership

23.7% of REE Automotive shares are held by institutional investors. Comparatively, 53.8% of shares of all “Motor vehicles & car bodies” companies are held by institutional investors. 6.0% of REE Automotive shares are held by insiders. Comparatively, 9.2% of shares of all “Motor vehicles & car bodies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares REE Automotive and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
REE Automotive $10,000.00 -$505.33 million -0.78
REE Automotive Competitors $44.91 billion $3.11 billion 96.33

REE Automotive’s competitors have higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

REE Automotive has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, REE Automotive’s competitors have a beta of 1.56, suggesting that their average stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for REE Automotive and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REE Automotive 2 0 3 0 2.20
REE Automotive Competitors 799 2034 2775 115 2.39

REE Automotive presently has a consensus price target of $7.17, suggesting a potential upside of 368.41%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 54.23%. Given REE Automotive’s higher possible upside, research analysts plainly believe REE Automotive is more favorable than its competitors.

Profitability

This table compares REE Automotive and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REE Automotive N/A -209.95% -183.48%
REE Automotive Competitors -12,601.44% -7.40% -1.28%

Summary

REE Automotive competitors beat REE Automotive on 10 of the 13 factors compared.

REE Automotive Company Profile (Get Rating)

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

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