Financial Analysis: Lion Electric (NYSE:LEV) versus Thunder Power (NASDAQ:AIEV)

Thunder Power (NASDAQ:AIEV) and Lion Electric (NYSE:LEV) 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 risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

65.0% of Thunder Power shares are owned by institutional investors. Comparatively, 52.7% of Lion Electric shares are owned by institutional investors. 5.1% of Thunder Power shares are owned by company insiders. Comparatively, 16.6% of Lion Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Thunder Power and Lion Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Power	N/A	N/A	N/A
Lion Electric	-74.35%	-32.42%	-12.99%

Risk & Volatility

Thunder Power has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Lion Electric has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Thunder Power and Lion Electric, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Power	0	0	0	0	0.00
Lion Electric	0	7	1	1	2.33

Lion Electric has a consensus target price of $1.46, suggesting a potential upside of 485.71%. Given Lion Electric’s stronger consensus rating and higher probable upside, analysts plainly believe Lion Electric is more favorable than Thunder Power.

Earnings & Valuation

This table compares Thunder Power and Lion Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Power	N/A	N/A	N/A	N/A	N/A
Lion Electric	$253.50 million	0.22	-$103.77 million	($0.59)	-0.42

Thunder Power has higher earnings, but lower revenue than Lion Electric.

Summary

Lion Electric beats Thunder Power on 7 of the 11 factors compared between the two stocks.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.

About Lion Electric

The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It distributes truck and bus parts, as well as accessories. The company was incorporated in 2008 and is based in Saint-Jérôme, Canada.