NIO (NYSE:NIO) vs. Polestar Automotive Holding UK (NASDAQ:PSNY) Head-To-Head Survey

NIO (NYSE:NIO) and Polestar Automotive Holding UK (NASDAQ:PSNY) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Volatility and Risk

NIO has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

48.6% of NIO shares are owned by institutional investors. Comparatively, 1.0% of Polestar Automotive Holding UK shares are owned by institutional investors. 1.0% of NIO shares are owned by company insiders. Comparatively, 0.0% of Polestar Automotive Holding UK shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NIO and Polestar Automotive Holding UK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	1	8	2	0	2.09
Polestar Automotive Holding UK	2	2	2	0	2.00

NIO presently has a consensus price target of $7.55, indicating a potential upside of 70.33%. Polestar Automotive Holding UK has a consensus price target of $3.48, indicating a potential upside of 403.40%. Given Polestar Automotive Holding UK’s higher possible upside, analysts clearly believe Polestar Automotive Holding UK is more favorable than NIO.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NIO	-39.38%	-111.91%	-20.99%
Polestar Automotive Holding UK	-25.83%	N/A	-21.58%

Valuation and Earnings

This table compares NIO and Polestar Automotive Holding UK’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$7.83 billion	0.97	-$2.94 billion	($1.69)	-2.62
Polestar Automotive Holding UK	$2.83 billion	0.52	-$465.79 million	N/A	N/A

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

Summary

NIO beats Polestar Automotive Holding UK on 7 of the 11 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About Polestar Automotive Holding UK

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