Reviewing Volcon (NASDAQ:EMPD) & Polaris (NYSE:PII)

Volcon (NASDAQ:EMPD) and Polaris (NYSE:PII) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

88.1% of Polaris shares are owned by institutional investors. 0.1% of Volcon shares are owned by insiders. Comparatively, 3.1% of Polaris shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Volcon has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500. Comparatively, Polaris has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Volcon and Polaris”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volcon	$980,000.00	130.57	-$150.05 million	($15.42)	-0.27
Polaris	$7.15 billion	0.44	-$465.50 million	($8.18)	-6.72

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

Profitability

This table compares Volcon and Polaris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-1,758.79%	-72.94%	-59.47%
Polaris	-6.51%	-0.05%	-0.01%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Volcon and Polaris, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	1	0	0	0	1.00
Polaris	1	11	0	0	1.92

Polaris has a consensus price target of $59.80, indicating a potential upside of 8.73%. Given Polaris’ stronger consensus rating and higher possible upside, analysts plainly believe Polaris is more favorable than Volcon.

Summary

Polaris beats Volcon on 10 of the 13 factors compared between the two stocks.

About Volcon

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.

About Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.