Reviewing Microvast (NASDAQ:MVST) and Futu (NASDAQ:FUTU)

Microvast (NASDAQ:MVST) and Futu (NASDAQ:FUTU) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Earnings and Valuation

This table compares Microvast and Futu”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvast	$444.50 million	2.17	-$195.46 million	($0.54)	-5.44
Futu	$1.75 billion	13.15	$700.73 million	$8.93	18.51

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Microvast and Futu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvast	1	1	1	0	2.00
Futu	0	2	6	2	3.00

Microvast presently has a consensus target price of $3.00, indicating a potential upside of 2.21%. Futu has a consensus target price of $203.67, indicating a potential upside of 23.18%. Given Futu’s stronger consensus rating and higher possible upside, analysts clearly believe Futu is more favorable than Microvast.

Risk and Volatility

Microvast has a beta of 3.39, meaning that its share price is 239% more volatile than the S&P 500. Comparatively, Futu has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Institutional & Insider Ownership

20.7% of Microvast shares are owned by institutional investors. 44.8% of Microvast shares are owned by insiders. Comparatively, 35.2% of Futu shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Microvast and Futu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microvast	-28.81%	11.34%	4.46%
Futu	47.11%	30.59%	5.03%

Summary

Futu beats Microvast on 12 of the 15 factors compared between the two stocks.

About Microvast

Microvast Holdings, Inc. provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.