Critical Contrast: Ford Motor (NYSE:F) versus LiveWire Group (NYSE:LVWR)

Ford Motor (NYSE:F) and LiveWire Group (NYSE:LVWR) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Ford Motor and LiveWire Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ford Motor	3	12	2	0	1.94
LiveWire Group	0	0	0	0	0.00

Ford Motor currently has a consensus target price of $10.5333, indicating a potential downside of 7.07%. Given Ford Motor’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ford Motor is more favorable than LiveWire Group.

Profitability

This table compares Ford Motor and LiveWire Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ford Motor	1.70%	12.46%	1.94%
LiveWire Group	-350.82%	-77.81%	-59.24%

Volatility and Risk

Ford Motor has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, LiveWire Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ford Motor and LiveWire Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ford Motor	$184.99 billion	0.24	$5.88 billion	$0.78	14.53
LiveWire Group	$26.63 million	28.88	-$93.93 million	($0.40)	-9.44

Ford Motor has higher revenue and earnings than LiveWire Group. LiveWire Group is trading at a lower price-to-earnings ratio than Ford Motor, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

58.7% of Ford Motor shares are held by institutional investors. Comparatively, 0.9% of LiveWire Group shares are held by institutional investors. 0.5% of Ford Motor shares are held by insiders. Comparatively, 2.1% of LiveWire Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Ford Motor beats LiveWire Group on 11 of the 14 factors compared between the two stocks.

About Ford Motor

Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.