Head to Head Analysis: Polestar Automotive Holding UK (NASDAQ:PSNY) & General Motors (NYSE:GM)

Polestar Automotive Holding UK (NASDAQ:PSNY) and General Motors (NYSE:GM) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Polestar Automotive Holding UK and General Motors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polestar Automotive Holding UK	2	3	1	0	1.83
General Motors	4	6	10	1	2.38

Polestar Automotive Holding UK currently has a consensus target price of $1.58, suggesting a potential upside of 43.64%. General Motors has a consensus target price of $56.92, suggesting a potential upside of 3.89%. Given Polestar Automotive Holding UK’s higher possible upside, research analysts plainly believe Polestar Automotive Holding UK is more favorable than General Motors.

Earnings & Valuation

This table compares Polestar Automotive Holding UK and General Motors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polestar Automotive Holding UK	$2.38 billion	0.99	-$1.19 billion	($0.57)	-1.93
General Motors	$171.84 billion	0.35	$10.13 billion	$9.38	5.84

General Motors has higher revenue and earnings than Polestar Automotive Holding UK. Polestar Automotive Holding UK is trading at a lower price-to-earnings ratio than General Motors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

1.0% of Polestar Automotive Holding UK shares are owned by institutional investors. Comparatively, 92.7% of General Motors shares are owned by institutional investors. 0.0% of Polestar Automotive Holding UK shares are owned by company insiders. Comparatively, 0.7% of General Motors shares are owned by company 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 Polestar Automotive Holding UK and General Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polestar Automotive Holding UK	N/A	N/A	N/A
General Motors	6.06%	16.30%	4.14%

Volatility and Risk

Polestar Automotive Holding UK has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, General Motors has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Summary

General Motors beats Polestar Automotive Holding UK on 12 of the 15 factors compared between the two stocks.

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.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.