Vroom (NASDAQ:VRM – Get Free Report) and Lucid Group (NASDAQ:LCID – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Vroom and Lucid Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -37.16% | -51.07% | -6.63% |
| Lucid Group | -248.09% | -304.01% | -41.43% |
Volatility and Risk
Vroom has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Lucid Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vroom | $178.83 million | 0.21 | -$7.96 million | ($12.76) | -0.56 |
| Lucid Group | $1.35 billion | 1.86 | -$2.70 billion | ($13.19) | -0.49 |
Vroom has higher earnings, but lower revenue than Lucid Group. Vroom is trading at a lower price-to-earnings ratio than Lucid Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
25.8% of Vroom shares are held by institutional investors. Comparatively, 75.2% of Lucid Group shares are held by institutional investors. 2.9% of Vroom shares are held by company insiders. Comparatively, 60.0% of Lucid Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Vroom and Lucid Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| Lucid Group | 3 | 7 | 1 | 0 | 1.82 |
Lucid Group has a consensus price target of $9.56, suggesting a potential upside of 47.92%. Given Lucid Group’s stronger consensus rating and higher possible upside, analysts clearly believe Lucid Group is more favorable than Vroom.
Summary
Lucid Group beats Vroom on 8 of the 14 factors compared between the two stocks.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
About Lucid Group
Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.
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