Analyzing ADOMANI (OTCMKTS:ADOM) and Cepton (NASDAQ:CPTN)

ADOMANI (OTCMKTS:ADOM) and Cepton (NASDAQ:CPTN) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

ADOMANI has a beta of 3.82, indicating that its stock price is 282% more volatile than the S&P 500. Comparatively, Cepton has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for ADOMANI and Cepton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADOMANI	0	0	0	0	N/A
Cepton	1	2	0	0	1.67

Institutional & Insider Ownership

2.1% of ADOMANI shares are owned by institutional investors. Comparatively, 68.2% of Cepton shares are owned by institutional investors. 30.1% of ADOMANI shares are owned by insiders. Comparatively, 38.2% of Cepton shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ADOMANI and Cepton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADOMANI	-344.40%	-12.40%	-12.02%
Cepton	-573.05%	N/A	-60.69%

Earnings & Valuation

This table compares ADOMANI and Cepton’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADOMANI	$620,000.00	0.00	-$4.39 million	N/A	N/A
Cepton	$9.68 million	4.55	$9.38 million	($3.51)	-0.79

Cepton has higher revenue and earnings than ADOMANI.

Summary

Cepton beats ADOMANI on 5 of the 8 factors compared between the two stocks.

About ADOMANI

Envirotech Vehicles, Inc. engages in the design, manufacture, and installation of zero-emission electric drivetrain systems for fleet vehicles. Its products and services include zero-emission vehicles and chassis; e-trikes; and Neighborhood Electric Vehicles that are enclosed vehicles with seatbelts, climate control, and fold-down rear seats. The company was founded by Edward Riggs Monfort on August 12, 2012 and is headquartered in Corona, CA.

About Cepton

Cepton, Inc. provides lidar-based solutions for automotive, smart cities, smart spaces, and smart industrial applications in the United States, Japan, China, and internationally. The company offers autograde lidar sensors, including Vista-X, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications; and Nova, an ultra-small form factor lidar solution with a range of up to 30m for near-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications. It also provides industrial grade lidar sensors, such as Vista-P, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and smart infrastructure applications; and Sora-P, an ultra-high scan rate, compact, and quasi line-scanning lidar solution that delivers high-fidelity profiling of objects moving at high speeds for free flow tolling and other industrial applications. The company was founded in 2016 and is headquartered in San Jose, California.