Nikola (NASDAQ:NKLA – Get Rating) and Ideanomics (NASDAQ:IDEX – Get Rating) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
Nikola has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Ideanomics has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
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Analyst Ratings
This is a summary of recent ratings and recommmendations for Nikola and Ideanomics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Nikola | 0 | 4 | 2 | 0 | 2.33 |
| Ideanomics | 0 | 2 | 0 | 0 | 2.00 |
Nikola currently has a consensus target price of $8.38, indicating a potential upside of 214.85%. Ideanomics has a consensus target price of $3.00, indicating a potential upside of 1,370.59%. Given Ideanomics' higher probable upside, analysts plainly believe Ideanomics is more favorable than Nikola.
Valuation and Earnings
This table compares Nikola and Ideanomics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Nikola | $44.26 million | 28.78 | -$690.44 million | ($1.71) | -1.56 |
| Ideanomics | $114.08 million | 1.05 | -$256.01 million | ($0.64) | -0.32 |
Ideanomics has higher revenue and earnings than Nikola. Nikola is trading at a lower price-to-earnings ratio than Ideanomics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nikola and Ideanomics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Nikola | N/A | -116.43% | -68.29% |
| Ideanomics | -268.05% | -49.11% | -36.77% |
Institutional & Insider Ownership
20.9% of Nikola shares are owned by institutional investors. Comparatively, 4.4% of Ideanomics shares are owned by institutional investors. 18.3% of Nikola shares are owned by insiders. Comparatively, 3.0% of Ideanomics 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.
About Nikola
(Get Rating)
Nikola Corp. engages in the provision of zero-emissions transportation and infrastructure solutions. It designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems and hydrogen fueling station infrastructure. The company was founded by Trevor Milton in 2015 and is headquartered in Phoenix, AZ.
About Ideanomics
(Get Rating)
Ideanomics, Inc. engages in facilitating the adoption of commercial electric vehicles and developing next generation financial services and fintech products. The firm operates through the Ideanomics Mobility and Ideanomics Capital business units. Ideanomics Mobility provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity. Ideanomics Capital offers financial services solutions powered by AI and blockchain. The company was founded by Shane B. McMahon on October 19, 2004 and is headquartered in New York, NY.
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