Polaris (NYSE:PII) versus Kandi Technologies Group (NASDAQ:KNDI) Financial Analysis

Kandi Technologies Group (NASDAQ:KNDI) and Polaris (NYSE:PII) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for Kandi Technologies Group and Polaris, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kandi Technologies Group	1	0	0	0	1.00
Polaris	1	12	1	0	2.00

Polaris has a consensus target price of $63.00, suggesting a potential upside of 11.47%. Given Polaris’ stronger consensus rating and higher probable upside, analysts clearly believe Polaris is more favorable than Kandi Technologies Group.

Insider and Institutional Ownership

3.7% of Kandi Technologies Group shares are owned by institutional investors. Comparatively, 88.1% of Polaris shares are owned by institutional investors. 16.8% of Kandi Technologies Group shares are owned by insiders. Comparatively, 2.4% of Polaris 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.

Risk & Volatility

Kandi Technologies Group has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Polaris has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kandi Technologies Group and Polaris”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kandi Technologies Group	$87.44 million	0.39	-$93.88 million	($3.00)	-1.11
Polaris	$7.45 billion	0.43	-$465.50 million	($4.63)	-12.21

Kandi Technologies Group has higher earnings, but lower revenue than Polaris. Polaris 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kandi Technologies Group	N/A	N/A	N/A
Polaris	-3.50%	16.77%	2.91%

Summary

Polaris beats Kandi Technologies Group on 9 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 Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.