Head-To-Head Comparison: REE Automotive (NASDAQ:REE) versus Dorman Products (NASDAQ:DORM)

REE Automotive (NASDAQ:REE) and Dorman Products (NASDAQ:DORM) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

REE Automotive has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, Dorman Products has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares REE Automotive and Dorman Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	N/A	N/A
Dorman Products	10.18%	19.37%	11.53%

Institutional and Insider Ownership

12.7% of REE Automotive shares are owned by institutional investors. Comparatively, 84.7% of Dorman Products shares are owned by institutional investors. 7.7% of Dorman Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for REE Automotive and Dorman Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	1	0	0	0	1.00
Dorman Products	0	3	5	0	2.62

Dorman Products has a consensus price target of $147.50, suggesting a potential upside of 15.94%. Given Dorman Products’ stronger consensus rating and higher possible upside, analysts plainly believe Dorman Products is more favorable than REE Automotive.

Earnings and Valuation

This table compares REE Automotive and Dorman Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$1.30 million	1.87	-$55.81 million	($5.28)	-0.01
Dorman Products	$2.13 billion	1.77	$204.19 million	$7.22	17.62

Dorman Products has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.

Summary

Dorman Products beats REE Automotive on 12 of the 14 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

About Dorman Products

Dorman Products, Inc. supplies replacement and upgrade parts for passenger cars, light trucks, medium- and heavy-duty trucks, utility terrain vehicles, and all-terrain vehicles in the motor vehicle aftermarket industry in the United States and internationally. It offers engine products, including intake and exhaust manifolds, fans, thermostat housings, and throttle bodies; undercar products comprising fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, and transmission and axle components; steering and suspension products consist of control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, such as door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products comprise new and remanufactured modules, clusters and sensors; and hardware products, such as threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise. The company also provides air tanks, shock absorbers, and air springs; transmission control modules, variable geometry timing actuators, and other control modules and sensors; new control arms, suspension components, door lock actuators, and handles for electric vehicles; and leaf springs, intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, UTV windshields, and complex electronics modules. It markets its products under the DORMAN, DORMAN OE FIX, HELP!, Conduct-Tite, Dayton Parts, SuperATV, Keller Performance Products, Assault Industries, Gboost, and GDP brands. Dorman Products, Inc. was founded in 1918 and is headquartered in Colmar, Pennsylvania.