Head-To-Head Analysis: Vroom (NASDAQ:VRM) vs. Elio Motors (OTCMKTS:ELIO)

Elio Motors (OTCMKTS:ELIO) and Vroom (NASDAQ:VRM) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility & Risk

Elio Motors has a beta of 14.4, indicating that its share price is 1,340% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

25.8% of Vroom shares are owned by institutional investors. 81.4% of Elio Motors shares are owned by company insiders. Comparatively, 2.9% of Vroom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Elio Motors and Vroom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elio Motors	N/A	N/A	N/A	N/A	N/A
Vroom	$178.83 million	0.25	-$7.96 million	($12.76)	-0.67

Elio Motors has higher earnings, but lower revenue than Vroom.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Elio Motors and Vroom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elio Motors	0	0	0	0	0.00
Vroom	1	0	0	0	1.00

Given Elio Motors’ higher possible upside, analysts plainly believe Elio Motors is more favorable than Vroom.

Profitability

This table compares Elio Motors and Vroom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elio Motors	N/A	N/A	N/A
Vroom	-37.16%	-51.07%	-6.63%

Summary

Elio Motors beats Vroom on 6 of the 9 factors compared between the two stocks.

About Elio Motors

Elio Motors, Inc., a development stage company, designs, develops, manufactures, and sells automobiles. The company focuses on developing the Elio, a three wheeled vehicle for mass production in the United States, which gives 84 miles per gallon. Elio Motors, Inc. was founded in 2009 and is based in Phoenix, Arizona.

About Vroom

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.