Analyzing Kandi Technologies Group (NASDAQ:KNDI) and Peloton Interactive (NASDAQ:PTON)

Kandi Technologies Group (NASDAQ:KNDI) and Peloton Interactive (NASDAQ:PTON) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Kandi Technologies Group and Peloton Interactive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kandi Technologies Group	$127.57 million	1.06	-$50.50 million	($0.58)	-2.72
Peloton Interactive	$2.49 billion	1.26	-$118.90 million	($0.31)	-24.81

Kandi Technologies Group has higher earnings, but lower revenue than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than Kandi Technologies Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Kandi Technologies Group and Peloton Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kandi Technologies Group	0	0	0	0	0.00
Peloton Interactive	0	10	9	0	2.47

Peloton Interactive has a consensus target price of $8.7853, suggesting a potential upside of 14.24%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Peloton Interactive is more favorable than Kandi Technologies Group.

Profitability

This table compares Kandi Technologies Group and Peloton Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kandi Technologies Group	-39.45%	-6.82%	-5.21%
Peloton Interactive	-4.78%	N/A	-5.63%

Institutional & Insider Ownership

3.7% of Kandi Technologies Group shares are held by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are held by institutional investors. 16.8% of Kandi Technologies Group shares are held by company insiders. Comparatively, 1.3% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Kandi Technologies Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Summary

Peloton Interactive beats Kandi Technologies Group on 10 of the 14 factors compared between the two stocks.

About Kandi Technologies Group

Kandi Technologies Group, Inc. engages in designing, developing, manufacturing, and commercializing electric vehicle (EV) products and parts in the People's Republic of China and the United States. It offers also off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and battery packs and smart battery swap system. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.