Financial Review: Faraday Future Intelligent Electric (NASDAQ:FFAI) versus OPENLANE (NYSE:KAR)

Faraday Future Intelligent Electric (NASDAQ:FFAI) and OPENLANE (NYSE:KAR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Earnings & Valuation

This table compares Faraday Future Intelligent Electric and OPENLANE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Faraday Future Intelligent Electric	$614,000.00	267.83	-$355.85 million	($3.47)	-0.32
OPENLANE	$1.90 billion	1.40	$109.90 million	$0.87	28.66

OPENLANE has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than OPENLANE, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Faraday Future Intelligent Electric and OPENLANE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Faraday Future Intelligent Electric	-54,380.62%	-187.07%	-52.34%
OPENLANE	8.18%	11.65%	3.40%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Faraday Future Intelligent Electric and OPENLANE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Faraday Future Intelligent Electric	1	1	1	0	2.00
OPENLANE	0	2	4	1	2.86

Faraday Future Intelligent Electric currently has a consensus target price of $5.00, suggesting a potential upside of 346.43%. OPENLANE has a consensus target price of $30.20, suggesting a potential upside of 21.13%. Given Faraday Future Intelligent Electric’s higher possible upside, analysts plainly believe Faraday Future Intelligent Electric is more favorable than OPENLANE.

Institutional & Insider Ownership

71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 99.8% of OPENLANE shares are held by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are held by company insiders. Comparatively, 1.5% of OPENLANE shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Faraday Future Intelligent Electric has a beta of 4.55, meaning that its stock price is 355% more volatile than the S&P 500. Comparatively, OPENLANE has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Summary

OPENLANE beats Faraday Future Intelligent Electric on 12 of the 15 factors compared between the two stocks.

About Faraday Future Intelligent Electric

Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.

About OPENLANE

OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in North America, Europe, the Philippines, and Uruguay. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles. Its digital marketplaces include OPENLANE, a mobile-app enabled solutions that allows dealers to sell and source inventory in the United States. This segment also provides value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent used vehicle dealers. The company serves commercial customers and dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.