Reviewing REE Automotive (NASDAQ:REE) & Commercial Vehicle Group (NASDAQ:CVGI)

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

Volatility & Risk

Commercial Vehicle Group has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.

Earnings and Valuation

This table compares Commercial Vehicle Group and REE Automotive”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commercial Vehicle Group	$723.35 million	0.09	-$27.87 million	($1.62)	-1.05
REE Automotive	$180,000.00	98.96	-$111.75 million	($7.19)	-0.11

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

Insider and Institutional Ownership

72.3% of Commercial Vehicle Group shares are owned by institutional investors. Comparatively, 12.7% of REE Automotive shares are owned by institutional investors. 4.2% of Commercial Vehicle Group shares are owned by insiders. Comparatively, 6.0% of REE Automotive shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Commercial Vehicle Group and REE Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commercial Vehicle Group	-8.35%	-11.03%	-3.63%
REE Automotive	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Commercial Vehicle Group and REE Automotive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commercial Vehicle Group	1	1	0	0	1.50
REE Automotive	1	2	1	0	2.00

REE Automotive has a consensus target price of $8.17, suggesting a potential upside of 920.58%. Given REE Automotive’s stronger consensus rating and higher probable upside, analysts plainly believe REE Automotive is more favorable than Commercial Vehicle Group.

Summary

REE Automotive beats Commercial Vehicle Group on 10 of the 14 factors compared between the two stocks.

About Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.

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.