Comparing Mercedes-Benz Group (OTCMKTS:MBGYY) and Lotus Technology (NASDAQ:LOT)

Lotus Technology (NASDAQ:LOT) and Mercedes-Benz Group (OTCMKTS:MBGYY) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Lotus Technology and Mercedes-Benz Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	0	1	0	0	2.00
Mercedes-Benz Group	1	2	0	0	1.67

Lotus Technology presently has a consensus price target of $7.00, indicating a potential upside of 81.35%. Given Lotus Technology’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lotus Technology is more favorable than Mercedes-Benz Group.

Insider and Institutional Ownership

63.4% of Lotus Technology shares are held by institutional investors. 0.2% of Lotus Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Lotus Technology and Mercedes-Benz Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	-87.61%	N/A	-38.53%
Mercedes-Benz Group	7.36%	11.66%	4.11%

Risk and Volatility

Lotus Technology has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lotus Technology and Mercedes-Benz Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Technology	$1.01 billion	2.58	-$742.00 million	($1.56)	-2.47
Mercedes-Benz Group	$165.81 billion	N/A	$15.43 billion	C$2.88	5.06

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

Summary

Mercedes-Benz Group beats Lotus Technology on 8 of the 12 factors compared between the two stocks.

About Lotus Technology

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.