Head to Head Review: Mitsubishi Motors (OTCMKTS:MMTOF) vs. Nikola (OTCMKTS:NKLAQ)

Nikola (OTCMKTS:NKLAQ) and Mitsubishi Motors (OTCMKTS:MMTOF) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Nikola and Mitsubishi Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nikola	N/A	N/A	N/A
Mitsubishi Motors	N/A	N/A	N/A

Earnings and Valuation

This table compares Nikola and Mitsubishi Motors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nikola	$35.84 million	0.04	-$966.28 million	($14.26)	0.00
Mitsubishi Motors	N/A	N/A	N/A	$139.7353	0.02

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Nikola and Mitsubishi Motors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nikola	0	3	1	0	2.25
Mitsubishi Motors	0	0	0	0	0.00

Nikola currently has a consensus target price of $6.00, suggesting a potential upside of 28,471.43%. Given Nikola’s stronger consensus rating and higher possible upside, analysts clearly believe Nikola is more favorable than Mitsubishi Motors.

Institutional and Insider Ownership

37.4% of Nikola shares are held by institutional investors. Comparatively, 9.8% of Mitsubishi Motors shares are held by institutional investors. 0.7% of Nikola shares are held 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.

Summary

Nikola beats Mitsubishi Motors 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 Mitsubishi Motors

Mitsubishi Motors Corporation, together with its subsidiaries, engages in the development, production, and sale of passenger vehicles, and its parts and components in Japan, Europe, North America, Oceania, the rest of Asia, and internationally. Its products include EVs/PHEVs, SUVs, pickup trucks, MPVs, and cars under the Mitsubishi brand. It is also involved in automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; and manufacturing of automobile engines and transmissions, and press parts. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.