Subaru (OTCMKTS:FUJHY – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Risk & Volatility
Subaru has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, REE Automotive has a beta of 3.04, indicating that its stock price is 204% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Subaru and REE Automotive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Subaru | 0 | 0 | 0 | 0 | 0.00 |
| REE Automotive | 1 | 0 | 2 | 1 | 2.75 |
Valuation & Earnings
This table compares Subaru and REE Automotive”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Subaru | $32.58 billion | 0.35 | $2.66 billion | $1.77 | 4.40 |
| REE Automotive | $1.61 million | 49.61 | -$114.21 million | ($8.95) | -0.85 |
Subaru has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Subaru, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Subaru and REE Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Subaru | 8.36% | 15.69% | 8.43% |
| REE Automotive | -6,265.21% | -119.91% | -72.27% |
Institutional & Insider Ownership
0.0% of Subaru shares are owned by institutional investors. Comparatively, 12.7% of REE Automotive shares are owned by institutional investors. 6.0% of REE Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
REE Automotive beats Subaru on 8 of the 15 factors compared between the two stocks.
About Subaru
Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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