Critical Survey: NIO (NYSE:NIO) and Lion Electric (NYSE:LEV)

NIO (NYSE:NIOGet Rating) and Lion Electric (NYSE:LEVGet Rating) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares NIO and Lion Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NIO -19.67% -24.99% -9.83%
Lion Electric -33.87% -10.19% -5.74%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NIO $5.67 billion 5.66 -$625.45 million ($0.74) -26.00
Lion Electric $57.71 million 15.64 -$43.33 million ($0.38) -12.50

Lion Electric has lower revenue, but higher earnings than NIO. NIO is trading at a lower price-to-earnings ratio than Lion Electric, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

NIO has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500. Comparatively, Lion Electric has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for NIO and Lion Electric, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIO 0 1 13 0 2.93
Lion Electric 0 4 6 0 2.60

NIO presently has a consensus target price of $39.20, indicating a potential upside of 103.74%. Lion Electric has a consensus target price of $10.55, indicating a potential upside of 122.01%. Given Lion Electric’s higher probable upside, analysts clearly believe Lion Electric is more favorable than NIO.

Institutional & Insider Ownership

43.0% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

About NIO

(Get Rating)

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

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.

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