Lucid Group (NASDAQ:LCID) and Nissan Motor (OTCMKTS:NSANY) Critical Review

Lucid Group (NASDAQ:LCID) and Nissan Motor (OTCMKTS:NSANY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Lucid Group and Nissan Motor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucid Group	1	8	0	0	1.89
Nissan Motor	1	0	0	0	1.00

Lucid Group currently has a consensus target price of $3.71, indicating a potential upside of 2.80%. Given Lucid Group’s stronger consensus rating and higher probable upside, analysts plainly believe Lucid Group is more favorable than Nissan Motor.

Profitability

This table compares Lucid Group and Nissan Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucid Group	-390.39%	-55.35%	-28.83%
Nissan Motor	2.78%	6.52%	2.16%

Valuation and Earnings

This table compares Lucid Group and Nissan Motor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucid Group	$668.29 million	12.46	-$2.83 billion	($1.27)	-2.84
Nissan Motor	$87.87 billion	0.13	$2.94 billion	$1.53	3.73

Nissan Motor has higher revenue and earnings than Lucid Group. Lucid Group is trading at a lower price-to-earnings ratio than Nissan Motor, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.2% of Lucid Group shares are owned by institutional investors. 61.3% of Lucid Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Lucid Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Nissan Motor has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

Nissan Motor beats Lucid Group on 7 of the 13 factors compared between the two stocks.

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.

About Nissan Motor

Nissan Motor Co., Ltd. manufactures and sells vehicles and automotive parts worldwide. It sells vehicles under the Nissan and Infiniti brands. The company offers vehicle and vehicle parts; engines, manual transmissions, and multiplier/reducer units; automotive parts; axles; and other related components. It also provides financial services, auto credit and car leasing, card business, insurance agency, and inventory finance, as well as engages in exterior and interior design for automobiles, and analysis of new materials and devices. In addition, the company engages in the provision of travel, environmental and engineering, production technology center, and facility services; ground and vehicle management, and information and measurement technology businesses; design, vehicle drawings and experiments, other engineering, electronic devices, and electronic equipment businesses; export and import of auto components and materials; and real estate businesses. Further, it is involved in planning and engineering of minicars and other related parts; and development, manufacturing, and sales of lithium-ion batteries for automotive use. Additionally, the company imports and sells Renault cars and parts; manages professional soccer club; and hold football and other sports event. The company was incorporated in 1933 and is headquartered in Yokohama, Japan.