Lotus Technology (NASDAQ:LOT – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Profitability
This table compares Lotus Technology and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lotus Technology | -89.43% | N/A | -22.29% |
| Vroom | -37.16% | -51.07% | -6.63% |
Institutional and Insider Ownership
63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 25.8% of Vroom shares are held by institutional investors. 0.2% of Lotus Technology shares are held by company insiders. Comparatively, 2.9% of Vroom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lotus Technology | $519.10 million | 1.47 | -$464.22 million | ($0.72) | -1.65 |
| Vroom | $178.83 million | 0.21 | -$7.96 million | ($12.76) | -0.57 |
Vroom has lower revenue, but higher earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than Vroom, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Lotus Technology and Vroom, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lotus Technology | 1 | 0 | 0 | 0 | 1.00 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
Lotus Technology has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Summary
Vroom beats Lotus Technology on 6 of the 11 factors compared between the two stocks.
About Lotus Technology
Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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