Comparing Volvo Car AB (publ.) (OTCMKTS:VLVOF) and Rivian Automotive (NASDAQ:RIVN)

Rivian Automotive (NASDAQ:RIVN) and Volvo Car AB (publ.) (OTCMKTS:VLVOF) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

66.2% of Rivian Automotive shares are held by institutional investors. 1.5% of Rivian Automotive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Rivian Automotive and Volvo Car AB (publ.), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rivian Automotive	7	8	12	0	2.19
Volvo Car AB (publ.)	3	1	0	0	1.25

Rivian Automotive presently has a consensus price target of $18.95, indicating a potential upside of 18.47%. Given Rivian Automotive’s stronger consensus rating and higher possible upside, research analysts clearly believe Rivian Automotive is more favorable than Volvo Car AB (publ.).

Profitability

This table compares Rivian Automotive and Volvo Car AB (publ.)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rivian Automotive	-54.96%	-73.90%	-23.91%
Volvo Car AB (publ.)	N/A	N/A	N/A

Earnings and Valuation

This table compares Rivian Automotive and Volvo Car AB (publ.)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rivian Automotive	$5.39 billion	4.30	-$3.65 billion	($2.58)	-6.20
Volvo Car AB (publ.)	N/A	N/A	N/A	N/A	N/A

Volvo Car AB (publ.) has lower revenue, but higher earnings than Rivian Automotive.

Summary

Rivian Automotive beats Volvo Car AB (publ.) on 6 of the 9 factors compared between the two stocks.

About Rivian Automotive

Rivian Automotive, Inc., together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name. It provides consumer services, such as digital financing and leasing, telematics-based insurance, vehicle maintenance and repair services, software services, and charging solutions. In addition, the company designs, develops, manufactures, and operates the Rivian Adventure Network Direct Current fast chargers, and offers access to Combined Charging Standard, as well as FleetOS, a proprietary, end-to-end centralized fleet management subscription platform. Further, it offers Rivian Commercial Van platform for Electric Delivery Van with collaboration with Amazon.com, Inc. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.

About Volvo Car AB (publ.)

Volvo Car AB (publ.) designs, develops, manufactures, markets, assembles, and sells passenger cars in Europe, China, the United States, and internationally. The company offers sedans and SUV vehicles under the Volvo brand; and electric cars under the Volvo and Polestar brands. It also provides vehicle parts and accessories, as well as sells online. The company was founded in 1927 and is headquartered in Gothenburg, Sweden. Volvo Car AB (publ.) is a subsidiary of Geely Sweden Holdings AB.