Critical Analysis: Lotus Technology (NASDAQ:LOT) versus Lucid Group (NASDAQ:LCID)

Lucid Group (NASDAQ:LCID) and Lotus Technology (NASDAQ:LOT) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Lucid Group and Lotus Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucid Group	-406.63%	-74.67%	-33.45%
Lotus Technology	-87.61%	N/A	-38.53%

Volatility & Risk

Lucid Group has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Institutional & Insider Ownership

75.2% of Lucid Group shares are owned by institutional investors. Comparatively, 63.4% of Lotus Technology shares are owned by institutional investors. 61.3% of Lucid Group shares are owned by company insiders. Comparatively, 0.2% of Lotus Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Lucid Group and Lotus Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucid Group	1	7	1	0	2.00
Lotus Technology	0	1	0	0	2.00

Lucid Group presently has a consensus target price of $3.16, suggesting a potential upside of 1.79%. Lotus Technology has a consensus target price of $7.00, suggesting a potential upside of 79.95%. Given Lotus Technology’s higher possible upside, analysts plainly believe Lotus Technology is more favorable than Lucid Group.

Earnings and Valuation

This table compares Lucid Group and Lotus Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucid Group	$730.51 million	12.78	-$2.83 billion	($1.34)	-2.31
Lotus Technology	$1.01 billion	2.60	-$742.00 million	($1.56)	-2.49

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

Summary

Lucid Group beats Lotus Technology on 8 of the 13 factors compared between the two stocks.

About Lucid Group

Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.

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.