Head-To-Head Survey: PACCAR (NASDAQ:PCAR) & Lotus Technology (NASDAQ:LOT)

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

Analyst Ratings

This is a summary of current ratings and price targets for Lotus Technology and PACCAR, as reported 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 41.41%. PACCAR has a consensus target price of $112.73, suggesting a potential upside of 14.88%. Given Lotus Technology’s higher probable upside, analysts clearly believe Lotus Technology is more favorable than PACCAR.

Risk & Volatility

Lotus Technology has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lotus Technology and PACCAR”s gross 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	0.35	-$742.00 million	($0.84)	-5.89
PACCAR	$35.29 billion	1.46	$4.60 billion	$9.64	10.18

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 and Insider Ownership

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

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.