Analyzing Lotus Technology (NASDAQ:LOT) and PACCAR (NASDAQ:PCAR)

Lotus Technology (NASDAQ:LOT) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for Lotus Technology and PACCAR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	0	1	0	0	2.00
PACCAR	0	8	4	0	2.33

Lotus Technology currently has a consensus target price of $7.00, suggesting a potential upside of 40.28%. PACCAR has a consensus target price of $112.73, suggesting a potential upside of 9.01%. Given Lotus Technology’s higher possible upside, equities research analysts plainly believe Lotus Technology is more favorable than PACCAR.

Valuation and Earnings

This table compares Lotus Technology and PACCAR”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Technology	$947.09 million	0.36	-$742.00 million	($0.84)	-5.94
PACCAR	$35.29 billion	1.54	$4.60 billion	$9.64	10.73

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

Profitability

This table compares Lotus Technology and PACCAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	N/A	N/A	-39.69%
PACCAR	14.07%	29.87%	12.38%

Institutional & Insider Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 64.9% of PACCAR shares are held by institutional investors. 0.2% of Lotus Technology shares are held by company insiders. Comparatively, 2.0% of PACCAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Lotus Technology has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Summary

PACCAR beats Lotus Technology on 13 of the 14 factors compared between the two stocks.

About Lotus Technology

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.