Lotus Technology (NASDAQ:LOT) vs. PACCAR (NASDAQ:PCAR) Critical Analysis

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

Risk and Volatility

PACCAR has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Valuation and Earnings

This table compares PACCAR and Lotus Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$35.29 billion	1.46	$4.60 billion	$9.64	10.18
Lotus Technology	$947.09 million	0.35	-$742.00 million	($0.84)	-5.89

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

Analyst Recommendations

This is a summary of current ratings for PACCAR and Lotus Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0	8	4	0	2.33
Lotus Technology	0	1	0	0	2.00

PACCAR currently has a consensus target price of $112.73, indicating a potential upside of 14.88%. Lotus Technology has a consensus target price of $7.00, indicating a potential upside of 41.41%. Given Lotus Technology’s higher probable upside, analysts clearly believe Lotus Technology is more favorable than PACCAR.

Insider and Institutional Ownership

64.9% of PACCAR shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 2.0% of PACCAR shares are held by insiders. Comparatively, 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PACCAR and Lotus Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PACCAR	14.07%	29.87%	12.38%
Lotus Technology	N/A	N/A	-39.69%

Summary

PACCAR beats Lotus Technology on 13 of the 14 factors compared between the two stocks.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

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.