Analyzing Polestar Automotive Holding UK (NASDAQ:PSNY) and Lotus Technology (NASDAQ:LOT)
by Michael Walen · The Markets DailyLotus Technology (NASDAQ:LOT – Get Free Report) and Polestar Automotive Holding UK (NASDAQ:PSNY – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Insider & Institutional Ownership
63.4% of Lotus Technology shares are owned by institutional investors. Comparatively, 1.0% of Polestar Automotive Holding UK shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by insiders. Comparatively, 0.0% of Polestar Automotive Holding UK shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Lotus Technology and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lotus Technology | N/A | N/A | N/A |
| Polestar Automotive Holding UK | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Lotus Technology and Polestar Automotive Holding UK, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lotus Technology | 1 | 0 | 0 | 0 | 1.00 |
| Polestar Automotive Holding UK | 2 | 1 | 0 | 0 | 1.33 |
Risk and Volatility
Lotus Technology has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Valuation and Earnings
This table compares Lotus Technology and Polestar Automotive Holding UK”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lotus Technology | $519.10 million | 1.05 | -$464.22 million | ($0.72) | -1.18 |
| Polestar Automotive Holding UK | $3.06 billion | 0.19 | -$2.36 billion | ($19.21) | -0.32 |
Lotus Technology has higher earnings, but lower revenue than Polestar Automotive Holding UK. Lotus Technology is trading at a lower price-to-earnings ratio than Polestar Automotive Holding UK, indicating that it is currently the more affordable of the two stocks.
Summary
Lotus Technology beats Polestar Automotive Holding UK on 5 of the 9 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 Polestar Automotive Holding UK
Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.