Fisker (NYSE:FSRN) versus NIO (NYSE:NIO) Financial Contrast

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$63.52 billion	0.18	-$2.94 billion	($1.69)	-4.01
Fisker	$272.89 million	0.00	-$939.95 million	($2.22)	0.00

Fisker has lower revenue, but higher earnings 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.

Risk & Volatility

NIO has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Fisker has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for NIO and Fisker, as reported by MarketBeat.

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

NIO presently has a consensus target price of $5.93, indicating a potential downside of 12.42%. Given NIO’s higher possible upside, research analysts clearly believe NIO is more favorable than Fisker.

Profitability

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

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

Institutional & Insider Ownership

48.5% of NIO shares are held by institutional investors. Comparatively, 33.6% of Fisker shares are held by institutional investors. 1.0% of NIO shares are held by company insiders. Comparatively, 26.3% of Fisker shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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

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.

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.