Financial Review: Tesla (NASDAQ:TSLA) & Lightning eMotors (NYSE:ZEV)

Lightning eMotors (NYSE:ZEV) and Tesla (NASDAQ:TSLA) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lightning eMotors and Tesla, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightning eMotors	0	0	0	0	N/A
Tesla	6	17	11	0	2.15

Tesla has a consensus price target of $187.30, suggesting a potential downside of 5.35%. Given Tesla’s higher probable upside, analysts clearly believe Tesla is more favorable than Lightning eMotors.

Insider & Institutional Ownership

25.2% of Lightning eMotors shares are owned by institutional investors. Comparatively, 66.2% of Tesla shares are owned by institutional investors. 3.7% of Lightning eMotors shares are owned by insiders. Comparatively, 25.1% of Tesla shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Lightning eMotors and Tesla’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightning eMotors	$24.69 million	0.01	$15.17 million	($11.19)	0.00
Tesla	$94.75 billion	6.66	$15.00 billion	$3.92	50.48

Tesla has higher revenue and earnings than Lightning eMotors. Lightning eMotors is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Lightning eMotors has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500. Comparatively, Tesla has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500.

Profitability

This table compares Lightning eMotors and Tesla’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightning eMotors	-221.51%	-221.78%	-69.89%
Tesla	14.37%	13.18%	7.72%

Summary

Tesla beats Lightning eMotors on 12 of the 13 factors compared between the two stocks.

About Lightning eMotors

Lightning eMotors, Inc. designs, manufactures, and sells zero-emission commercial fleet vehicles and powertrains to commercial fleets, large enterprises, original equipment manufacturers, and governments in the United States. It offers zero-emission class 3 to 7 commercial electric and fuel cell vehicles. The company's vehicles comprise cargo and passenger vehicles, school buses, ambulances, shuttle buses, work trucks, transit buses, and motorcoaches. It also offers charging systems and charging infrastructure solutions. The company was founded in 2008 and is based in Loveland, Colorado.

About Tesla

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.