Financial Analysis: Lion Electric (NYSE:LEV) versus ECD Automotive Design (NASDAQ:ECDA)

ECD Automotive Design (NASDAQ:ECDA) and Lion Electric (NYSE:LEV) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Volatility and Risk

ECD Automotive Design has a beta of -1.49, indicating that its stock price is 249% less volatile than the S&P 500. Comparatively, Lion Electric has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for ECD Automotive Design and Lion Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	0	0	1	0	3.00
Lion Electric	0	7	1	1	2.33

ECD Automotive Design presently has a consensus price target of $9.00, suggesting a potential upside of 963.08%. Lion Electric has a consensus price target of $1.46, suggesting a potential upside of 485.71%. Given ECD Automotive Design’s stronger consensus rating and higher possible upside, analysts clearly believe ECD Automotive Design is more favorable than Lion Electric.

Profitability

This table compares ECD Automotive Design and Lion Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	N/A	N/A	N/A
Lion Electric	-74.35%	-32.42%	-12.99%

Insider & Institutional Ownership

94.8% of ECD Automotive Design shares are owned by institutional investors. Comparatively, 52.7% of Lion Electric shares are owned by institutional investors. 77.3% of ECD Automotive Design shares are owned by insiders. Comparatively, 16.6% of Lion Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares ECD Automotive Design and Lion Electric”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$15.12 million	1.94	-$1.60 million	N/A	N/A
Lion Electric	$253.50 million	0.22	-$103.77 million	($0.59)	-0.42

ECD Automotive Design has higher earnings, but lower revenue than Lion Electric.

Summary

ECD Automotive Design beats Lion Electric on 9 of the 12 factors compared between the two stocks.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.

About Lion Electric

The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It distributes truck and bus parts, as well as accessories. The company was incorporated in 2008 and is based in Saint-Jérôme, Canada.