Lotus Technology (LOT) & Its Peers Critical Analysis

Lotus Technology (NASDAQ:LOT) is one of 68 public companies in the “Motor vehicles & car bodies” industry, but how does it weigh in compared to its competitors? We will compare Lotus Technology to similar companies based on the strength of its valuation, dividends, profitability, analyst recommendations, institutional ownership, risk and earnings.

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	-0.62%	-39.40%
Lotus Technology Competitors	-150.59%	-25.89%	-9.13%

Volatility & Risk

Lotus Technology has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500. Comparatively, Lotus Technology’s competitors have a beta of 3.66, suggesting that their average stock price is 266% more volatile than the S&P 500.

Institutional and Insider Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 47.6% of shares of all “Motor vehicles & car bodies” companies are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Comparatively, 13.2% of shares of all “Motor vehicles & car bodies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lotus Technology and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lotus Technology	$679.01 million	-$742.00 million	-12.58
Lotus Technology Competitors	$46.81 billion	$2.49 billion	-7.37

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.

Analyst Ratings

This is a summary 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	0	1	0	0	2.00
Lotus Technology Competitors	961	2495	3377	151	2.39

Lotus Technology presently has a consensus target price of $7.00, suggesting a potential upside of 15.89%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 5.97%. Given Lotus Technology’s higher probable upside, analysts plainly believe Lotus Technology is more favorable than its competitors.

Summary

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

About Lotus Technology

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.