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Critical Review: REE Automotive (NASDAQ:REE) and Volcon (NASDAQ:VLCN)

Financial News Live ·  Jan 25, 2023 17:20

REE Automotive (NASDAQ:REE – Get Rating) and Volcon (NASDAQ:VLCN – Get Rating) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

23.5% of REE Automotive shares are held by institutional investors. Comparatively, 4.2% of Volcon shares are held by institutional investors. 41.1% of Volcon shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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Analyst Ratings

This is a summary of current recommendations and price targets for REE Automotive and Volcon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REE Automotive 2 1 3 0 2.17
Volcon 0 0 1 0 3.00
REE Automotive presently has a consensus price target of $3.75, suggesting a potential upside of 624.92%. Volcon has a consensus price target of $6.00, suggesting a potential upside of 300.00%. Given REE Automotive's higher probable upside, research analysts clearly believe REE Automotive is more favorable than Volcon.

Profitability

This table compares REE Automotive and Volcon's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REE Automotive N/A -61.76% -52.44%
Volcon -988.41% -416.47% -203.73%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REE Automotive $10,000.00 16,759.95 -$505.33 million ($0.44) -1.18
Volcon $450,000.00 81.25 -$40.13 million N/A N/A

Volcon has higher revenue and earnings than REE Automotive.

Risk & Volatility

REE Automotive has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Volcon has a beta of -0.44, indicating that its share price is 144% less volatile than the S&P 500.

Summary

REE Automotive beats Volcon on 8 of the 12 factors compared between the two stocks.

About REE Automotive

(Get Rating)

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

About Volcon

(Get Rating)

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States and Latin America. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is headquartered in Round Rock, Texas.

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