Contrasting NIO (NYSE:NIO) & NWTN (NASDAQ:NWTN)

NIO (NYSE:NIO) and NWTN (NASDAQ:NWTN) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for NIO and NWTN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	1	1	2.09
NWTN	0	0	0	0	0.00

NIO presently has a consensus price target of $5.03, indicating a potential upside of 11.62%. Given NIO’s stronger consensus rating and higher possible upside, equities analysts clearly believe NIO is more favorable than NWTN.

Insider & Institutional Ownership

48.5% of NIO shares are owned by institutional investors. Comparatively, 0.2% of NWTN shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Comparatively, 46.1% of NWTN shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$63.52 billion	0.15	-$2.94 billion	($1.51)	-2.98
NWTN	$583,000.00	211.08	-$40.72 million	N/A	N/A

NWTN has lower revenue, but higher earnings than NIO.

Profitability

This table compares NIO and NWTN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-33.41%	-113.83%	-19.82%
NWTN	N/A	N/A	N/A

Volatility and Risk

NIO has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, NWTN has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.

Summary

NIO beats NWTN on 7 of the 13 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 NWTN

NWTN Inc. operates as a smart passenger vehicle company, provides passenger-centric mobility and green energy solutions in the United States, the United Arab Emirates, and Mainland China. The company develops electric vehicles, including Supersport coupe; and smart passenger vehicles, such as MUSE and ADA. It integrates design, life-style personalization, IoT connectivity, autonomous driving technology, and green energy eco-systems for future mobility solutions. The company also involved in the wholesale and retail of vehicles; and provision of business management, operations, commercialization, as well as design and technology development services. NWTN Inc. was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.