Lotus Technology (NASDAQ:LOT – Get Free Report) and AB Volvo (publ) (OTCMKTS:VLVLY – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Earnings & Valuation
This table compares Lotus Technology and AB Volvo (publ)”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lotus Technology | $679.01 million | 3.53 | -$742.00 million | ($1.56) | -2.27 |
| AB Volvo (publ) | $52.11 billion | 0.99 | $4.70 billion | $2.42 | 10.48 |
AB Volvo (publ) has higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than AB Volvo (publ), indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Analyst Ratings
This is a breakdown of recent ratings and target prices for Lotus Technology and AB Volvo (publ), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
| AB Volvo (publ) | 0 | 4 | 3 | 1 | 2.63 |
Lotus Technology presently has a consensus price target of $7.00, suggesting a potential upside of 97.74%. Given Lotus Technology’s higher probable upside, equities analysts clearly believe Lotus Technology is more favorable than AB Volvo (publ).
Profitability
This table compares Lotus Technology and AB Volvo (publ)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lotus Technology | -87.61% | N/A | -38.53% |
| AB Volvo (publ) | 9.64% | 29.41% | 7.47% |
Institutional and Insider Ownership
63.4% of Lotus Technology shares are owned by institutional investors. Comparatively, 0.0% of AB Volvo (publ) shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
AB Volvo (publ) beats Lotus Technology on 11 of the 15 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 AB Volvo (publ)
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
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