Analyzing VinFast Auto (NASDAQ:VFS) and ECD Automotive Design (NASDAQ:ECDA)
by Kim Johansen · The Markets DailyVinFast Auto (NASDAQ:VFS – Get Free Report) and ECD Automotive Design (NASDAQ:ECDA – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and target prices for VinFast Auto and ECD Automotive Design, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VinFast Auto | 1 | 1 | 3 | 0 | 2.40 |
| ECD Automotive Design | 1 | 0 | 0 | 0 | 1.00 |
VinFast Auto currently has a consensus price target of $5.83, suggesting a potential upside of 103.96%. Given VinFast Auto’s stronger consensus rating and higher probable upside, equities analysts plainly believe VinFast Auto is more favorable than ECD Automotive Design.
Insider and Institutional Ownership
94.8% of ECD Automotive Design shares are held by institutional investors. 16.2% of VinFast Auto shares are held by insiders. Comparatively, 17.8% of ECD Automotive Design shares are held by 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
VinFast Auto has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.
Profitability
This table compares VinFast Auto and ECD Automotive Design’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VinFast Auto | -107.40% | N/A | -55.10% |
| ECD Automotive Design | -33.06% | N/A | -52.37% |
Earnings & Valuation
This table compares VinFast Auto and ECD Automotive Design”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VinFast Auto | $3.60 billion | 1.86 | -$3.18 billion | ($1.66) | -1.72 |
| ECD Automotive Design | $24.50 million | 0.00 | -$10.77 million | ($53.00) | 0.00 |
ECD Automotive Design has lower revenue, but higher earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than ECD Automotive Design, indicating that it is currently the more affordable of the two stocks.
Summary
VinFast Auto beats ECD Automotive Design on 7 of the 13 factors compared between the two stocks.
About VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
About ECD Automotive Design
ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.