Polestar Automotive Holding UK (NASDAQ:PSNY) vs. BYD (OTCMKTS:BYDDY) Critical Contrast

Polestar Automotive Holding UK (NASDAQ:PSNY) and BYD (OTCMKTS:BYDDY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Polestar Automotive Holding UK and BYD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polestar Automotive Holding UK	0	4	0	0	2.00
BYD	0	0	0	0	0.00

Polestar Automotive Holding UK currently has a consensus target price of $1.81, indicating a potential upside of 32.30%. Given Polestar Automotive Holding UK’s stronger consensus rating and higher possible upside, research analysts clearly believe Polestar Automotive Holding UK is more favorable than BYD.

Profitability

This table compares Polestar Automotive Holding UK and BYD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polestar Automotive Holding UK	N/A	N/A	N/A
BYD	5.71%	22.70%	5.86%

Volatility and Risk

Polestar Automotive Holding UK has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, BYD has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Institutional & Insider Ownership

1.0% of Polestar Automotive Holding UK shares are held by institutional investors. Comparatively, 0.0% of BYD shares are held by institutional investors. 0.0% of Polestar Automotive Holding UK shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Polestar Automotive Holding UK and BYD”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polestar Automotive Holding UK	$2.03 billion	1.44	-$2.05 billion	($0.57)	-2.40
BYD	$108.10 billion	1.13	$5.60 billion	$0.71	19.23

BYD has higher revenue and earnings than Polestar Automotive Holding UK. Polestar Automotive Holding UK is trading at a lower price-to-earnings ratio than BYD, indicating that it is currently the more affordable of the two stocks.

Summary

BYD beats Polestar Automotive Holding UK on 7 of the 13 factors compared between the two stocks.

About Polestar Automotive Holding UK

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

About BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.