VinFast Auto (NASDAQ:VFS – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
25.8% of Vroom shares are held by institutional investors. 16.2% of VinFast Auto shares are held by insiders. Comparatively, 2.9% of Vroom shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares VinFast Auto and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VinFast Auto | -107.40% | N/A | -55.03% |
| Vroom | -37.16% | -51.07% | -6.63% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VinFast Auto | $3.60 billion | 2.20 | -$3.96 billion | ($1.66) | -2.04 |
| Vroom | $178.83 million | 0.29 | -$7.96 million | ($12.76) | -0.78 |
Vroom has lower revenue, but higher earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Vroom, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for VinFast Auto and Vroom, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VinFast Auto | 1 | 0 | 3 | 0 | 2.50 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
VinFast Auto currently has a consensus price target of $5.83, indicating a potential upside of 72.58%. Given VinFast Auto’s stronger consensus rating and higher probable upside, equities analysts clearly believe VinFast Auto is more favorable than Vroom.
Risk and Volatility
VinFast Auto has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Summary
VinFast Auto beats Vroom on 8 of the 14 factors compared between the two stocks.
About VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
Receive News & Ratings for VinFast Auto Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VinFast Auto and related companies with MarketBeat.com's FREE daily email newsletter.
