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Analyzing Subaru (OTCMKTS:FUJHY) and Rivian Automotive (NASDAQ:RIVN)

Defense World ·  Sep 14, 2022 01:41

Subaru (OTCMKTS:FUJHY – Get Rating) and Rivian Automotive (NASDAQ:RIVN – Get Rating) are both large-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Profitability

This table compares Subaru and Rivian Automotive's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Subaru 2.65% 4.03% 2.19%
Rivian Automotive -1,361.67% -39.27% -27.74%

Analyst Ratings

This is a summary of current ratings and target prices for Subaru and Rivian Automotive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Subaru 1 0 3 0 2.50
Rivian Automotive 1 6 14 0 2.62
Rivian Automotive has a consensus price target of 65.89, suggesting a potential upside of 69.99%. Given Rivian Automotive's stronger consensus rating and higher possible upside, analysts plainly believe Rivian Automotive is more favorable than Subaru.

Valuation & Earnings

This table compares Subaru and Rivian Automotive's revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Subaru $24.45 billion 0.55 $623.06 million $0.44 19.86
Rivian Automotive $55.00 million 645.66 -$4.69 billion -20.70 -1.87

Subaru has higher revenue and earnings than Rivian Automotive. Rivian Automotive is trading at a lower price-to-earnings ratio than Subaru, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

62.1% of Rivian Automotive shares are owned by institutional investors. 2.3% of Rivian Automotive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Subaru beats Rivian Automotive on 7 of the 13 factors compared between the two stocks.

About Subaru

(Get Rating)

Subaru Corporation manufactures and sells automobiles and aerospace products worldwide. It operates through three segments: Automotive Business Unit, Aerospace Company, and Other Businesses. The company manufactures, sells, and repairs passenger cars and their components, airplanes, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. Subaru Corporation was founded in 1917 and is headquartered in Tokyo, Japan.

About Rivian Automotive

(Get Rating)

Rivian Automotive, Inc. designs, develops, manufactures, and sells electric vehicles and accessories. The company offers five-passenger pickup trucks and sports utility vehicles. It provides Rivian Commercial Vehicle platform for electric Delivery Van with collaboration with Amazon.com. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in San Jose, California.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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