NIO (NYSE:NIO) vs. Harley-Davidson (NYSE:HOG) Financial Contrast

NIO (NYSE:NIO) and Harley-Davidson (NYSE:HOG) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NIO and Harley-Davidson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	8	6	0	2.25
Harley-Davidson	2	5	4	1	2.33

NIO currently has a consensus target price of $5.98, suggesting a potential upside of 63.17%. Harley-Davidson has a consensus target price of $27.44, suggesting a potential upside of 5.84%. Given NIO’s higher possible upside, equities analysts plainly believe NIO is more favorable than Harley-Davidson.

Profitability

This table compares NIO and Harley-Davidson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-3.95%	-111.37%	-3.62%
Harley-Davidson	4.78%	6.28%	2.45%

Volatility and Risk

NIO has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

48.5% of NIO shares are owned by institutional investors. Comparatively, 85.1% of Harley-Davidson shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Comparatively, 1.0% of Harley-Davidson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares NIO and Harley-Davidson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$12.51 billion	0.73	-$2.14 billion	($0.27)	-13.57
Harley-Davidson	$4.24 billion	0.64	$338.74 million	$1.63	15.91

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

Summary

Harley-Davidson beats NIO on 10 of the 15 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About Harley-Davidson

Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.