Arcimoto (NASDAQ:FUV) and Leatt (OTCMKTS:LEAT) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Arcimoto has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500. Comparatively, Leatt has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Arcimoto and Leatt, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcimoto 0 0 2 0 3.00
Leatt 0 0 0 0 N/A

Arcimoto presently has a consensus price target of $9.00, indicating a potential upside of 287.93%. Given Arcimoto’s higher probable upside, equities analysts clearly believe Arcimoto is more favorable than Leatt.

Insider & Institutional Ownership

1.6% of Arcimoto shares are held by institutional investors. 56.3% of Arcimoto shares are held by insiders. Comparatively, 40.6% of Leatt shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Arcimoto and Leatt’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcimoto $130,000.00 250.38 -$3.31 million ($0.24) -9.67
Leatt $20.14 million 0.64 $230,000.00 N/A N/A

Leatt has higher revenue and earnings than Arcimoto.

Profitability

This table compares Arcimoto and Leatt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcimoto -5,067.42% -71.99% -61.08%
Leatt 4.50% 13.28% 8.45%

Summary

Leatt beats Arcimoto on 7 of the 12 factors compared between the two stocks.

About Arcimoto

Arcimoto, Inc. designs, develops, manufactures, and sells three-wheeled electric vehicles. The company was formerly known as WTP Inc and changed its name to Arcimoto, Inc. in December 2011. Arcimoto, Inc. was founded in 2007 and is headquartered in Eugene, Oregon.

About Leatt

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides Leatt helmet range for head and brain protection; and Leatt body armor range, including chest protectors, body protectors, back protectors, elbow guards, shoulder braces, knee braces, knee and leg guards, kidney belts, and impact shorts for use in various activities, such as horseback riding, snowboarding, skiing, and other activities. In addition, the company offers Leatt apparel range comprising gloves, riding jackets, jerseys, bicycle shorts and pants, and off road pants, as well as casual clothing and socks; and other products, parts, and accessories, including toolbelt bags, duffel bags, gear bags, helmet bags, and hats and hydration kits. Further, it provides aftermarket support services; and acts as the original equipment manufacturer for neck braces sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs, as well as racing car drivers. It sells its products to customers through a network of distributors and retailers; and through online store under the Website leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. Leatt Corporation was incorporated in 2005 and is headquartered in Durbanville, South Africa.

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