Reviewing NIO (NYSE:NIO) and GreenPower Motor (NASDAQ:GP)

NIO (NYSE:NIO) and GreenPower Motor (NASDAQ:GP) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

NIO has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 3.03, meaning that its share price is 203% more volatile than the S&P 500.

Profitability

This table compares NIO and GreenPower Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-34.71%	-589.46%	-23.54%
GreenPower Motor	-94.78%	-561.91%	-48.06%

Valuation and Earnings

This table compares NIO and GreenPower Motor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$9.01 billion	1.41	-$3.06 billion	($1.60)	-3.79
GreenPower Motor	$19.85 million	0.56	-$18.66 million	($6.20)	-0.59

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

Insider and Institutional Ownership

48.6% of NIO shares are held by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Comparatively, 28.1% of GreenPower Motor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NIO and GreenPower Motor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	1	7	3	1	2.33
GreenPower Motor	0	0	0	0	0.00

NIO presently has a consensus target price of $5.83, suggesting a potential downside of 3.98%. Given NIO’s stronger consensus rating and higher probable upside, equities analysts plainly believe NIO is more favorable than GreenPower Motor.

Summary

NIO beats GreenPower Motor on 10 of the 15 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.