Critical Contrast: Fisker (NYSE:FSRN) and Lucid Group (NASDAQ:LCID)

Lucid Group (NASDAQ:LCID) and Fisker (NYSE:FSRN) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Lucid Group and Fisker, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucid Group	1	8	0	0	1.89
Fisker	0	0	0	0	N/A

Lucid Group presently has a consensus target price of $3.71, suggesting a potential downside of 9.71%. Given Lucid Group’s higher probable upside, analysts clearly believe Lucid Group is more favorable than Fisker.

Earnings & Valuation

This table compares Lucid Group and Fisker’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucid Group	$668.29 million	14.19	-$2.83 billion	($1.27)	-3.24
Fisker	$272.89 million	0.01	-$939.95 million	($2.22)	0.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lucid Group	-441.29%	-53.53%	-30.61%
Fisker	-278.72%	-161.43%	-23.26%

Institutional and Insider Ownership

75.2% of Lucid Group shares are held by institutional investors. Comparatively, 33.6% of Fisker shares are held by institutional investors. 61.3% of Lucid Group shares are held by company insiders. Comparatively, 26.3% of Fisker shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Lucid Group has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Fisker has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Summary

Lucid Group beats Fisker on 8 of the 12 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 Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.