Financial Review: PHINIA (NYSE:PHIN) versus Canoo (NASDAQ:GOEV)

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

Insider & Institutional Ownership

36.2% of Canoo shares are held by institutional investors. Comparatively, 90.9% of PHINIA shares are held by institutional investors. 9.7% of Canoo shares are held by company insiders. Comparatively, 1.5% of PHINIA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Canoo and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canoo	N/A	-97.99%	-35.14%
PHINIA	2.48%	8.04%	3.69%

Analyst Recommendations

This is a breakdown of current recommendations for Canoo and PHINIA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canoo	0	2	5	0	2.71
PHINIA	0	0	2	0	3.00

Canoo currently has a consensus target price of $23.04, indicating a potential upside of 1,500.12%. PHINIA has a consensus target price of $52.50, indicating a potential upside of 13.66%. Given Canoo’s higher possible upside, analysts plainly believe Canoo is more favorable than PHINIA.

Earnings & Valuation

This table compares Canoo and PHINIA’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canoo	$1.49 million	66.22	-$302.02 million	($10.49)	-0.14
PHINIA	$3.51 billion	0.60	$102.00 million	$4.95	9.33

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

Volatility & Risk

Canoo has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Summary

PHINIA beats Canoo on 9 of the 14 factors compared between the two stocks.

About Canoo

Canoo Inc., a mobility technology company, designs, develops, markets, and manufactures electric vehicles for consumer, commercial fleet, government, and military customers in the United States. the company utilizes its multi-purpose platform architecture, a self-contained, fully functional rolling chassis that directly houses the critical components for operation of an electric vehicle, including its in-house designed proprietary electric drivetrain, battery systems, advanced vehicle control electronics and software, and other critical components. It offers lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups; battery modules; and engineering services. In addition, the company provides digital ecosystem, a suite of products and software tools comprising CanooHub, a web-based fleet management portal; driver mobile app for real-time vehicle status and access to remote commands; vehicle human machine interface that encompasses vehicle controls, customizable settings, range mode, cruise control, vehicle alerts, camera feeds for safety and connectivity, such as cellular, Wi-Fi and Bluetooth, as well as data and analytics infrastructure. Canoo Inc. was founded in 2017 and is headquartered in Torrance, California.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.