Critical Analysis: Volcon (EMPD) versus The Competition

Volcon (NASDAQ:EMPD) is one of 26 public companies in the “AUTO – DOMESTIC” industry, but how does it compare to its rivals? We will compare Volcon to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Volcon and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Volcon	$4.04 million	-$45.51 million	-0.03
Volcon Competitors	$23.89 billion	$510.60 million	13.52

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

Institutional & Insider Ownership

50.6% of shares of all “AUTO – DOMESTIC” companies are held by institutional investors. 0.1% of Volcon shares are held by insiders. Comparatively, 12.8% of shares of all “AUTO – DOMESTIC” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Volcon has a beta of -0.62, meaning that its share price is 162% less volatile than the S&P 500. Comparatively, Volcon’s rivals have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Volcon and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	1	0	0	1	2.50
Volcon Competitors	862	2311	2605	133	2.34

As a group, “AUTO – DOMESTIC” companies have a potential upside of 4.79%. Given Volcon’s rivals higher possible upside, analysts clearly believe Volcon has less favorable growth aspects than its rivals.

Profitability

This table compares Volcon and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-1,758.79%	-27.36%	-23.81%
Volcon Competitors	-186.51%	-23.88%	-12.22%

Summary

Volcon rivals beat Volcon on 11 of the 13 factors compared.

Volcon Company Profile

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.