Arcimoto (NASDAQ:FUV) and Fox Factory (NASDAQ:FOXF) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Arcimoto and Fox Factory’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcimoto $130,000.00 357.37 -$3.31 million ($0.24) -12.08
Fox Factory $475.63 million 5.51 $43.12 million $1.59 43.36

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

Insider and Institutional Ownership

0.6% of Arcimoto shares are owned by institutional investors. Comparatively, 98.3% of Fox Factory shares are owned by institutional investors. 56.3% of Arcimoto shares are owned by insiders. Comparatively, 5.6% of Fox Factory shares are owned by 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.

Analyst Recommendations

This is a breakdown of recent ratings for Arcimoto and Fox Factory, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcimoto 0 0 1 0 3.00
Fox Factory 0 2 4 0 2.67

Arcimoto currently has a consensus price target of $9.00, suggesting a potential upside of 210.34%. Fox Factory has a consensus price target of $62.40, suggesting a potential downside of 9.49%. Given Arcimoto’s stronger consensus rating and higher probable upside, analysts clearly believe Arcimoto is more favorable than Fox Factory.

Volatility and Risk

Arcimoto has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Profitability

This table compares Arcimoto and Fox Factory’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcimoto N/A -44.17% -39.69%
Fox Factory 11.43% 29.77% 17.75%

Summary

Fox Factory beats Arcimoto on 10 of the 14 factors compared between the two stocks.

About Arcimoto

Arcimoto, Inc. designs, develops, manufactures, and sells three-wheeled electric vehicles. The company was formerly known as WTP Inc and changed its name to Arcimoto, Inc. in December 2011. Arcimoto, Inc. was founded in 2007 and is headquartered in Eugene, Oregon.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers front fork and rear suspension products for mountain bikes and road bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, bars, stems, and seat posts, as well as aftermarket products to retailers and distributors. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Scotts Valley, California.

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