Reviewing Fisker (NYSE:FSRN) and NIO (NYSE:NIO)

Fisker (NYSE:FSRN) and NIO (NYSE:NIO) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Fisker and NIO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fisker	0	0	0	0	N/A
NIO	1	8	2	1	2.25

NIO has a consensus target price of $5.93, suggesting a potential downside of 12.36%. Given NIO’s higher probable upside, analysts clearly believe NIO is more favorable than Fisker.

Profitability

This table compares Fisker and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fisker	-278.72%	-161.43%	-23.26%
NIO	-32.47%	-104.61%	-19.41%

Valuation and Earnings

This table compares Fisker and NIO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fisker	$272.89 million	0.11	-$939.95 million	($2.22)	-0.01
NIO	$63.52 billion	0.18	-$2.94 billion	($1.69)	-4.01

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

Institutional & Insider Ownership

33.6% of Fisker shares are held by institutional investors. Comparatively, 48.5% of NIO shares are held by institutional investors. 26.3% of Fisker shares are held by insiders. Comparatively, 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Fisker has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, NIO has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Summary

NIO beats Fisker on 11 of the 14 factors compared between the two stocks.

About Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.