Tesla (NASDAQ:TSLA) versus LiveWire Group (NYSE:LVWR) Head to Head Comparison

LiveWire Group (NYSE:LVWR) and Tesla (NASDAQ:TSLA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Volatility & Risk

LiveWire Group has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Tesla has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LiveWire Group and Tesla, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LiveWire Group	1	0	0	0	1.00
Tesla	4	16	27	1	2.52

Tesla has a consensus target price of $414.51, indicating a potential upside of 15.71%. Given Tesla’s stronger consensus rating and higher possible upside, analysts plainly believe Tesla is more favorable than LiveWire Group.

Earnings & Valuation

This table compares LiveWire Group and Tesla”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LiveWire Group	$25.67 million	4.37	-$75.11 million	($0.36)	-1.52
Tesla	$94.83 billion	14.93	$3.79 billion	$0.91	393.65

Tesla has higher revenue and earnings than LiveWire Group. LiveWire Group is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LiveWire Group and Tesla’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LiveWire Group	-217.01%	-359.58%	-58.56%
Tesla	3.11%	3.03%	1.78%

Institutional & Insider Ownership

0.9% of LiveWire Group shares are owned by institutional investors. Comparatively, 66.2% of Tesla shares are owned by institutional investors. 0.4% of LiveWire Group shares are owned by insiders. Comparatively, 20.0% of Tesla shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Tesla beats LiveWire Group on 14 of the 15 factors compared between the two stocks.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.

About Tesla

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.