Critical Survey: Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) versus Nikola (OTCMKTS:NKLAQ)

Nikola (OTCMKTS:NKLAQ) and Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

37.4% of Nikola shares are held by institutional investors. Comparatively, 80.8% of Global X Autonomous & Electric Vehicles ETF shares are held by institutional investors. 0.7% of Nikola shares are held by insiders. Comparatively, 3.5% of Global X Autonomous & Electric Vehicles ETF shares 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.

Volatility & Risk

Nikola has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, Global X Autonomous & Electric Vehicles ETF has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Nikola and Global X Autonomous & Electric Vehicles ETF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nikola	N/A	N/A	N/A
Global X Autonomous & Electric Vehicles ETF	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nikola and Global X Autonomous & Electric Vehicles ETF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nikola	0	0	0	0	0.00
Global X Autonomous & Electric Vehicles ETF	0	4	1	0	2.62

Global X Autonomous & Electric Vehicles ETF has a consensus price target of $39.81, indicating a potential upside of 0.00%. Given Global X Autonomous & Electric Vehicles ETF’s stronger consensus rating and higher probable upside, analysts clearly believe Global X Autonomous & Electric Vehicles ETF is more favorable than Nikola.

Valuation and Earnings

This table compares Nikola and Global X Autonomous & Electric Vehicles ETF”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nikola	$68.86 million	0.01	-$958.23 million	($17.49)	0.00
Global X Autonomous & Electric Vehicles ETF	N/A	N/A	N/A	($0.28)	-142.18

Global X Autonomous & Electric Vehicles ETF has lower revenue, but higher earnings than Nikola. Global X Autonomous & Electric Vehicles ETF is trading at a lower price-to-earnings ratio than Nikola, indicating that it is currently the more affordable of the two stocks.

Summary

Global X Autonomous & Electric Vehicles ETF beats Nikola on 6 of the 9 factors compared between the two stocks.

About Nikola

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.

About Global X Autonomous & Electric Vehicles ETF

The Global X Autonomous & Electric Vehicles ETF (DRIV) is an exchange-traded fund that mostly invests in stocks based on a particular theme. The fund tracks an index that uses artificial intelligence to select global stocks involved in the development, production, or supporting technology of autonomous and electronic vehicles. DRIV was launched on Apr 13, 2018 and is issued by Global X.