Analyzing Lotus Technology (NASDAQ:LOT) and Thunder Power (NASDAQ:AIEV)

Thunder Power (NASDAQ:AIEV) and Lotus Technology (NASDAQ:LOT) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Thunder Power and Lotus Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Power	N/A	N/A	N/A	N/A	N/A
Lotus Technology	$1.01 billion	1.01	-$742.00 million	($1.56)	-0.97

Thunder Power has higher earnings, but lower revenue than Lotus Technology.

Institutional and Insider Ownership

65.0% of Thunder Power shares are owned by institutional investors. Comparatively, 63.4% of Lotus Technology shares are owned by institutional investors. 5.1% of Thunder Power 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thunder Power	N/A	N/A	N/A
Lotus Technology	-87.61%	N/A	-38.53%

Volatility and Risk

Thunder Power has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Thunder Power and Lotus Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Power	0	0	0	0	0.00
Lotus Technology	0	1	0	0	2.00

Lotus Technology has a consensus target price of $7.00, suggesting a potential upside of 363.58%. Given Lotus Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Lotus Technology is more favorable than Thunder Power.

Summary

Thunder Power beats Lotus Technology on 5 of the 8 factors compared between the two stocks.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.

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.