Head-To-Head Survey: U Power (NASDAQ:UCAR) and REE Automotive (NASDAQ:REE)

REE Automotive (NASDAQ:REE) and U Power (NASDAQ:UCAR) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for REE Automotive and U Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	0	2	1	0	2.33
U Power	1	0	1	0	2.00

REE Automotive currently has a consensus price target of $8.17, suggesting a potential upside of 569.40%. U Power has a consensus price target of $5.00, suggesting a potential upside of 157.73%. Given REE Automotive’s stronger consensus rating and higher possible upside, equities analysts plainly believe REE Automotive is more favorable than U Power.

Profitability

This table compares REE Automotive and U Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	N/A	N/A
U Power	N/A	N/A	N/A

Volatility & Risk

REE Automotive has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500. Comparatively, U Power has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

12.7% of REE Automotive shares are owned by institutional investors. Comparatively, 13.2% of U Power shares are owned by institutional investors. 6.0% of REE Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares REE Automotive and U Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$180,000.00	150.87	-$111.75 million	($7.19)	-0.17
U Power	$6.07 million	1.41	-$6.57 million	N/A	N/A

U Power has higher revenue and earnings than REE Automotive.

Summary

REE Automotive beats U Power on 5 of the 8 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.