Lotus Technology (LOT) vs. Its Peers Critical Analysis

Lotus Technology (NASDAQ:LOT) is one of 671 publicly-traded companies in the “Holding & other investment offices” industry, but how does it contrast to its peers? We will compare Lotus Technology to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Institutional and Insider Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 53.7% of shares of all “Holding & other investment offices” companies are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Comparatively, 25.4% of shares of all “Holding & other investment offices” companies are held by 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.

Earnings and Valuation

This table compares Lotus Technology and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lotus Technology	$679.01 million	-$742.00 million	-12.25
Lotus Technology Competitors	$1.12 billion	$43.31 million	55.56

Lotus Technology’s peers have higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Lotus Technology and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	N/A	-4.09%	-39.40%
Lotus Technology Competitors	-34.70%	-44.58%	0.00%

Volatility and Risk

Lotus Technology has a beta of -0.16, indicating that its stock price is 116% less volatile than the S&P 500. Comparatively, Lotus Technology’s peers have a beta of 0.04, indicating that their average stock price is 96% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lotus Technology and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	0	1	0	0	2.00
Lotus Technology Competitors	122	568	873	14	2.49

Lotus Technology presently has a consensus price target of $7.00, suggesting a potential upside of 19.05%. As a group, “Holding & other investment offices” companies have a potential upside of 63.74%. Given Lotus Technology’s peers stronger consensus rating and higher probable upside, analysts plainly believe Lotus Technology has less favorable growth aspects than its peers.

Summary

Lotus Technology peers beat Lotus Technology on 10 of the 13 factors compared.

About Lotus Technology

Lotus Technology Inc. engagers in the design, development, and sale of sports luxury lifestyle battery electric vehicles. It offers electric sports car models, including Eletre and Emeya. The company is based in Shanghai, China.