Polaris (NYSE:PII – Get Free Report) and Lotus Technology (NASDAQ:LOT – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Institutional and Insider Ownership
88.1% of Polaris shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 3.1% of Polaris shares are held by company insiders. Comparatively, 0.2% of Lotus Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Polaris has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Polaris | 1 | 11 | 1 | 0 | 2.00 |
| Lotus Technology | 0 | 0 | 0 | 0 | 0.00 |
Polaris currently has a consensus target price of $48.33, indicating a potential downside of 2.49%. Given Polaris’ stronger consensus rating and higher possible upside, research analysts plainly believe Polaris is more favorable than Lotus Technology.
Earnings and Valuation
This table compares Polaris and Lotus Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Polaris | $7.18 billion | 0.39 | $110.80 million | ($1.88) | -26.37 |
| Lotus Technology | $924.35 million | 1.39 | -$1.10 billion | ($1.54) | -1.23 |
Polaris has higher revenue and earnings than Lotus Technology. Polaris is trading at a lower price-to-earnings ratio than Lotus Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Polaris and Lotus Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Polaris | -1.57% | 5.16% | 1.19% |
| Lotus Technology | -122.01% | N/A | -42.71% |
Summary
Polaris beats Lotus Technology on 11 of the 14 factors compared between the two stocks.
About Polaris
Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.
About Lotus Technology
Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.
Receive News & Ratings for Polaris Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Polaris and related companies with MarketBeat.com's FREE daily email newsletter.
