LiveWire Group (NYSE:LVWR – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Volatility and Risk
LiveWire Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Profitability
This table compares LiveWire Group and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LiveWire Group | -263.77% | -137.09% | -62.55% |
| Vroom | -37.16% | -51.07% | -6.63% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LiveWire Group | $25.67 million | 8.72 | -$75.11 million | ($0.37) | -2.96 |
| Vroom | $178.83 million | 0.26 | -$7.96 million | ($12.76) | -0.70 |
Vroom has higher revenue and earnings than LiveWire Group. LiveWire Group is trading at a lower price-to-earnings ratio than Vroom, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for LiveWire Group and Vroom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LiveWire Group | 1 | 0 | 0 | 0 | 1.00 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
0.9% of LiveWire Group shares are owned by institutional investors. Comparatively, 25.8% of Vroom shares are owned by institutional investors. 0.4% of LiveWire Group shares are owned by company insiders. Comparatively, 2.9% of Vroom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Vroom beats LiveWire Group on 8 of the 11 factors compared between the two stocks.
About LiveWire Group
LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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