AB Volvo (publ) (OTCMKTS:VLVLY – Get Free Report) and Lotus Technology (NASDAQ:LOT – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Risk & Volatility
AB Volvo (publ) has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.
Profitability
This table compares AB Volvo (publ) and Lotus Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB Volvo (publ) | 9.64% | 29.41% | 7.47% |
| Lotus Technology | -87.61% | N/A | -38.53% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AB Volvo (publ) | $52.11 billion | 0.99 | $4.70 billion | $2.42 | 10.48 |
| Lotus Technology | $679.01 million | 3.53 | -$742.00 million | ($1.56) | -2.27 |
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.
Institutional and Insider Ownership
0.0% of AB Volvo (publ) shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for AB Volvo (publ) and Lotus Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB Volvo (publ) | 0 | 4 | 3 | 1 | 2.63 |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
Lotus Technology has a consensus target price of $7.00, indicating a potential upside of 97.74%. Given Lotus Technology’s higher probable upside, analysts plainly believe Lotus Technology is more favorable than AB Volvo (publ).
Summary
AB Volvo (publ) beats Lotus Technology on 11 of the 15 factors compared between the two stocks.
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.
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.
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