Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) and Lear (NYSE:LEA – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Profitability
This table compares Faraday Future Intelligent Electric and Lear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Faraday Future Intelligent Electric | -74,517.13% | -518.14% | -91.88% |
| Lear | 1.88% | 13.40% | 4.58% |
Risk and Volatility
Faraday Future Intelligent Electric has a beta of 5.24, indicating that its stock price is 424% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
| Lear | 0 | 9 | 2 | 1 | 2.33 |
Faraday Future Intelligent Electric currently has a consensus target price of $5.00, suggesting a potential upside of 868.80%. Lear has a consensus target price of $135.10, suggesting a potential downside of 1.29%. Given Faraday Future Intelligent Electric’s higher possible upside, research analysts clearly believe Faraday Future Intelligent Electric is more favorable than Lear.
Valuation and Earnings
This table compares Faraday Future Intelligent Electric and Lear”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Faraday Future Intelligent Electric | $540,000.00 | 187.99 | -$355.85 million | ($1.84) | -0.28 |
| Lear | $23.26 billion | 0.30 | $436.80 million | $8.15 | 16.79 |
Lear has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
71.7% of Faraday Future Intelligent Electric shares are owned by institutional investors. Comparatively, 97.0% of Lear shares are owned by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are owned by company insiders. Comparatively, 0.9% of Lear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Lear beats Faraday Future Intelligent Electric on 12 of the 15 factors compared between the two stocks.
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.
About Lear
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
Receive News & Ratings for Faraday Future Intelligent Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Faraday Future Intelligent Electric and related companies with MarketBeat.com's FREE daily email newsletter.
