Critical Comparison: Nikola (OTCMKTS:NKLAQ) and Ford Otomotiv Sanayi A.S. (OTCMKTS:FOVSY)

Nikola (OTCMKTS:NKLAQ) and Ford Otomotiv Sanayi A.S. (OTCMKTS:FOVSY) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Profitability

This table compares Nikola and Ford Otomotiv Sanayi A.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nikola	N/A	N/A	N/A
Ford Otomotiv Sanayi A.S.	N/A	N/A	N/A

Insider and Institutional Ownership

37.4% of Nikola shares are owned by institutional investors. Comparatively, 0.0% of Ford Otomotiv Sanayi A.S. shares are owned by institutional investors. 0.7% of Nikola shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Nikola and Ford Otomotiv Sanayi A.S.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nikola	$35.84 million	0.05	-$966.28 million	($14.26)	0.00
Ford Otomotiv Sanayi A.S.	N/A	N/A	N/A	$8.5624	1.28

Ford Otomotiv Sanayi A.S. has lower revenue, but higher earnings than Nikola. Nikola is trading at a lower price-to-earnings ratio than Ford Otomotiv Sanayi A.S., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Nikola and Ford Otomotiv Sanayi A.S., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nikola	0	3	1	0	2.25
Ford Otomotiv Sanayi A.S.	0	0	0	0	0.00

Nikola presently has a consensus target price of $6.00, indicating a potential upside of 19,900.00%. Given Nikola’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nikola is more favorable than Ford Otomotiv Sanayi A.S..

Summary

Nikola beats Ford Otomotiv Sanayi A.S. on 6 of the 8 factors compared between the two stocks.

About Nikola

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.

About Ford Otomotiv Sanayi A.S.

Ford Otomotiv Sanayi A.S. engages in the manufacture, assembling, import, export, and sale of motor vehicles and spare parts primarily in Turkey. It offers commercial vehicles, passenger cars, and spare parts; transit and transit custom, and transit courier vehicles; and trucks, as well as engines and powertrain products. Ford Otomotiv Sanayi A.S. was founded in 1926 and is headquartered in Istanbul, Turkey.