REE Automotive (NASDAQ:REE) and Cooper-Standard (NYSE:CPS) Financial Analysis

REE Automotive (NASDAQ:REE) and Cooper-Standard (NYSE:CPS) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares REE Automotive and Cooper-Standard”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$180,000.00	95.84	-$111.75 million	($7.19)	-0.11
Cooper-Standard	$2.73 billion	0.21	-$78.75 million	$1.82	18.04

Cooper-Standard has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Cooper-Standard, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares REE Automotive and Cooper-Standard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	N/A	N/A
Cooper-Standard	1.20%	N/A	-0.15%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for REE Automotive and Cooper-Standard, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	0	2	1	0	2.33
Cooper-Standard	1	2	1	0	2.00

REE Automotive currently has a consensus price target of $8.17, suggesting a potential upside of 953.76%. Cooper-Standard has a consensus price target of $39.00, suggesting a potential upside of 18.76%. Given REE Automotive’s stronger consensus rating and higher probable upside, equities research analysts clearly believe REE Automotive is more favorable than Cooper-Standard.

Risk and Volatility

REE Automotive has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500. Comparatively, Cooper-Standard has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

12.7% of REE Automotive shares are held by institutional investors. Comparatively, 69.1% of Cooper-Standard shares are held by institutional investors. 6.0% of REE Automotive shares are held by insiders. Comparatively, 8.8% of Cooper-Standard shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cooper-Standard beats REE Automotive on 7 of the 12 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

About Cooper-Standard

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.