VinFast Auto (NASDAQ:VFS) & Vroom (NASDAQ:VRM) Critical Review

VinFast Auto (NASDAQ:VFSGet Free Report) and Vroom (NASDAQ:VRMGet Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares VinFast Auto and Vroom”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VinFast Auto $90,178.63 billion 0.00 -$3.96 billion ($1.66) -2.10
Vroom $6.91 million 8.89 -$7.96 million ($12.76) -0.92

Vroom has lower revenue, but higher earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Vroom, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for VinFast Auto and Vroom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VinFast Auto 1 0 3 0 2.50
Vroom 1 0 0 0 1.00

VinFast Auto currently has a consensus target price of $5.83, suggesting a potential upside of 67.14%. Given VinFast Auto’s stronger consensus rating and higher possible upside, equities analysts clearly believe VinFast Auto is more favorable than Vroom.

Insider and Institutional Ownership

25.8% of Vroom shares are held by institutional investors. 16.2% of VinFast Auto shares are held by insiders. Comparatively, 2.9% of Vroom shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares VinFast Auto and Vroom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VinFast Auto -107.40% N/A -55.03%
Vroom -37.16% -51.07% -6.63%

Volatility & Risk

VinFast Auto has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

About VinFast Auto

(Get Free Report)

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

About Vroom

(Get Free Report)

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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