REE Automotive (NASDAQ:REE) and Polestar Automotive Holding UK (NASDAQ:PSNY) Critical Analysis

REE Automotive (NASDAQ:REEGet Free Report) and Polestar Automotive Holding UK (NASDAQ:PSNYGet Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

This table compares REE Automotive and Polestar Automotive Holding UK’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REE Automotive $1.61 million 29.90 -$114.21 million ($11.54) -0.40
Polestar Automotive Holding UK $2.46 billion 1.43 -$465.79 million N/A N/A

REE Automotive has higher earnings, but lower revenue than Polestar Automotive Holding UK.

Profitability

This table compares REE Automotive and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REE Automotive N/A -97.39% -71.49%
Polestar Automotive Holding UK -25.83% N/A -21.58%

Risk & Volatility

REE Automotive has a beta of 2.99, indicating that its stock price is 199% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for REE Automotive and Polestar Automotive Holding UK, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REE Automotive 1 0 1 0 2.00
Polestar Automotive Holding UK 2 2 3 0 2.14

REE Automotive currently has a consensus target price of $22.50, indicating a potential upside of 391.27%. Polestar Automotive Holding UK has a consensus target price of $4.36, indicating a potential upside of 164.14%. Given REE Automotive’s higher probable upside, research analysts plainly believe REE Automotive is more favorable than Polestar Automotive Holding UK.

Institutional & Insider Ownership

12.7% of REE Automotive shares are owned by institutional investors. Comparatively, 1.0% of Polestar Automotive Holding UK shares are owned by institutional investors. 0.0% of Polestar Automotive Holding UK shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About REE Automotive

(Get Free Report)

REE Automotive Ltd. operates as an automotive technology company in Israel, the United Kingdom, the United States, Germany, and internationally. The company offers REEcorner integrates vehicle components comprising as steering, braking, suspension, powertrain, and control into single compact module between the chassis and the wheel, which is controlled by its electronic unit functions, which includes drive-by-wire, steer-by-wire, break-by-wire, DaaS, smart corners, and design for serviceability; and REEplatform, a modular electric vehicle platform. It provides P7 EV Modular Platform designed for commercial delivery vehicles and walk-in vans; and Proxima Powered by REE, a class 5 fully drive-by-wire walk-in step van, which comprises EAVX and Morgan Olson body paired with REE's fully-flat modular P7 chassis and x-by-wire technology, which includes improved aerodynamics, enhanced driver ergonomics, driver visibility and safety, and enhanced maneuverability. Further, the company provides P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with REE's all-wheel drive and all-wheel steer for vehicle control, handling, and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, MaaS providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

About Polestar Automotive Holding UK

(Get Free Report)

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

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