Critical Contrast: Stellantis (NYSE:STLA) and LiveWire Group (NYSE:LVWR)

Stellantis (NYSE:STLA) and LiveWire Group (NYSE:LVWR) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares Stellantis and LiveWire Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stellantis	N/A	N/A	N/A
LiveWire Group	-217.01%	-252.42%	-55.55%

Analyst Recommendations

This is a summary of recent ratings and price targets for Stellantis and LiveWire Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stellantis	7	10	1	2	1.90
LiveWire Group	1	0	0	0	1.00

Stellantis presently has a consensus price target of $7.38, suggesting a potential upside of 66.35%. Given Stellantis’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Stellantis is more favorable than LiveWire Group.

Earnings and Valuation

This table compares Stellantis and LiveWire Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stellantis	$173.64 billion	0.10	-$25.31 billion	$0.39	11.37
LiveWire Group	$25.67 million	3.96	-$75.11 million	($0.36)	-1.38

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

Volatility and Risk

Stellantis has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, LiveWire Group has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Institutional and Insider Ownership

59.5% of Stellantis shares are held by institutional investors. Comparatively, 0.9% of LiveWire Group shares are held by institutional investors. 0.4% of LiveWire Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Stellantis beats LiveWire Group on 10 of the 14 factors compared between the two stocks.

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.