Continental (OTCMKTS:CTTAY – Get Free Report) and Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Insider & Institutional Ownership
0.0% of Continental shares are held by institutional investors. Comparatively, 71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Continental and Faraday Future Intelligent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Continental | 0.91% | 1.14% | 0.34% |
| Faraday Future Intelligent Electric | -74,517.13% | -518.14% | -91.88% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Continental | $22.26 billion | 0.64 | -$186.64 million | $0.16 | 44.81 |
| Faraday Future Intelligent Electric | $540,000.00 | 158.56 | -$355.85 million | ($1.84) | -0.24 |
Continental has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than Continental, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Continental and Faraday Future Intelligent Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Continental | 1 | 5 | 3 | 0 | 2.22 |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
Faraday Future Intelligent Electric has a consensus target price of $5.00, suggesting a potential upside of 1,048.63%. Given Faraday Future Intelligent Electric’s higher probable upside, analysts clearly believe Faraday Future Intelligent Electric is more favorable than Continental.
Risk & Volatility
Continental has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric has a beta of 5.38, meaning that its stock price is 438% more volatile than the S&P 500.
Summary
Continental beats Faraday Future Intelligent Electric on 9 of the 14 factors compared between the two stocks.
About Continental
Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
Receive News & Ratings for Continental Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Continental and related companies with MarketBeat.com's FREE daily email newsletter.
