Great Wall Motor (OTCMKTS:GWLLF) & Nikola (OTCMKTS:NKLAQ) Critical Review

Great Wall Motor (OTCMKTS:GWLLF) and Nikola (OTCMKTS:NKLAQ) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Great Wall Motor and Nikola, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Wall Motor	0	0	0	0	0.00
Nikola	0	3	1	0	2.25

Nikola has a consensus price target of $6.00, indicating a potential upside of 49,900.00%. Given Nikola’s stronger consensus rating and higher probable upside, analysts plainly believe Nikola is more favorable than Great Wall Motor.

Profitability

This table compares Great Wall Motor and Nikola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Wall Motor	N/A	N/A	N/A
Nikola	N/A	N/A	N/A

Insider and Institutional Ownership

10.8% of Great Wall Motor shares are owned by institutional investors. Comparatively, 37.4% of Nikola shares are owned by institutional investors. 0.7% of Nikola shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Great Wall Motor and Nikola”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Wall Motor	N/A	N/A	N/A	$2.66	0.71
Nikola	$68.86 million	0.02	-$958.23 million	($17.49)	0.00

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

Summary

Nikola beats Great Wall Motor on 6 of the 8 factors compared between the two stocks.

About Great Wall Motor

Great Wall Motor Company Limited researches and develops, manufactures, and sells automobiles, and automotive parts and components in China, Europe, ASEAN countries, Latin America, the Middle East, Australia, South Africa, and internationally. The company offers SUVs, sedans, pick-up trucks, multi-purpose vehicles, and energy vehicles primarily under the Haval, WEY, ORA, Tank, and Great Wall Pickup brand names. It also provides investment and financing, logistics and goods transportation, buildings rental, after-sales, customer sales, technical development and consulting, technical, and finance leasing services; consulting services on automotive research and development; and operates investment platform. In addition, the company repairs automobiles; transports general goods; researches, develops, and manufactures auto moulds; researches and develops unmanned vehicles; researches and manufactures motorcycles and related parts; and automotive technology research and development, and technical consultancy services, as well as processes, recycles, and sells waste and used materials; and sells lubricants. Further, it engages in the wholesale and retail of car accessories; research and test development of engineering technology; international trading activities; scrap car recycling and dismantling activities; and provision of insurance brokering, technical, and computer system services, as well as development of network and information security software. The company was formerly known as Baoding Great Wall Motor Company Limited and changed its name to Great Wall Motor Company Limited in May 2003. The company was founded in 1984 and is headquartered in Baoding, China. Great Wall Motor Company Limited is a subsidiary of Baoding Innovation Great Wall Asset Management Company Limited.

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.