Financial Analysis: Lotus Technology (LOT) versus Its Rivals

Lotus Technology (NASDAQ:LOT) is one of 119 public companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Lotus Technology to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Insider & Institutional Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 39.2% of shares of all “Automobiles” companies are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Comparatively, 14.6% of shares of all “Automobiles” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Lotus Technology and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	1	0	0	0	1.00
Lotus Technology Competitors	2140	5145	6398	191	2.33

As a group, “Automobiles” companies have a potential upside of 65.40%. Given Lotus Technology’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Lotus Technology has less favorable growth aspects than its competitors.

Risk and Volatility

Lotus Technology has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Lotus Technology’s competitors have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	N/A	N/A	N/A
Lotus Technology Competitors	-1,522.34%	-123.40%	-11.66%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lotus Technology	$519.10 million	-$464.22 million	-0.38
Lotus Technology Competitors	$53.35 billion	$1.13 billion	7.34

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

Summary

Lotus Technology competitors beat Lotus Technology on 9 of the 13 factors compared.

Lotus Technology Company Profile

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.