Aeva Technologies (NASDAQ:AEVA) & OPENLANE (NYSE:KAR) Critical Analysis

Aeva Technologies (NASDAQ:AEVA) and OPENLANE (NYSE:KAR) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aeva Technologies and OPENLANE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeva Technologies	1	1	3	0	2.40
OPENLANE	0	2	4	1	2.86

Aeva Technologies currently has a consensus target price of $26.50, indicating a potential upside of 37.02%. OPENLANE has a consensus target price of $30.20, indicating a potential downside of 2.20%. Given Aeva Technologies’ higher probable upside, equities research analysts clearly believe Aeva Technologies is more favorable than OPENLANE.

Institutional & Insider Ownership

62.9% of Aeva Technologies shares are owned by institutional investors. Comparatively, 99.8% of OPENLANE shares are owned by institutional investors. 27.2% of Aeva Technologies shares are owned by company insiders. Comparatively, 1.5% of OPENLANE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Aeva Technologies has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, OPENLANE has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Aeva Technologies and OPENLANE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeva Technologies	$9.06 million	128.25	-$152.26 million	($5.32)	-3.64
OPENLANE	$1.79 billion	1.83	$109.90 million	$0.87	35.49

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

Profitability

This table compares Aeva Technologies and OPENLANE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeva Technologies	-1,031.15%	-603.21%	-112.53%
OPENLANE	9.00%	12.42%	3.65%

Summary

OPENLANE beats Aeva Technologies on 11 of the 15 factors compared between the two stocks.

About Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.

About OPENLANE

OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in North America, Europe, the Philippines, and Uruguay. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles. Its digital marketplaces include OPENLANE, a mobile-app enabled solutions that allows dealers to sell and source inventory in the United States. This segment also provides value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent used vehicle dealers. The company serves commercial customers and dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.