Nikola (OTCMKTS:NKLAQ) vs. Renault (OTCMKTS:RNSDF) Head to Head Contrast

Renault (OTCMKTS:RNSDF) and Nikola (OTCMKTS:NKLAQ) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Insider & Institutional Ownership

24.6% of Renault shares are held by institutional investors. Comparatively, 37.4% of Nikola shares are held by institutional investors. 0.7% of Nikola shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Renault and Nikola”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renault	N/A	N/A	N/A	$4.71	7.67
Nikola	$35.84 million	0.03	-$966.28 million	($14.26)	0.00

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

Profitability

This table compares Renault and Nikola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renault	N/A	N/A	N/A
Nikola	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Renault and Nikola, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renault	0	0	0	0	0.00
Nikola	0	3	1	0	2.25

Nikola has a consensus target price of $6.00, suggesting a potential upside of 29,900.00%. Given Nikola’s stronger consensus rating and higher possible upside, analysts plainly believe Nikola is more favorable than Renault.

Summary

Nikola beats Renault on 6 of the 8 factors compared between the two stocks.

About Renault

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan. The company's Sale Financing segment offers sale financing, leasing, maintenance, and services contract under the Mobilize Financial Services brand. Its Mobility Services segment provides mobility and energy solutions for electric vehicle users under the Mobilize brand. In addition, it is also involved in the design, manufacture, and sale of passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands. Further, the company offers used vehicles and spare parts; and engages in business-to-business powertrain activities, and research and advanced engineering activities. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.

About Nikola

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.