Financial Contrast: Holley (NYSE:HLLY) versus ECARX (NASDAQ:ECX)

ECARX (NASDAQ:ECX) and Holley (NYSE:HLLY) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares ECARX and Holley”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECARX	$847.90 million	0.36	-$66.04 million	($0.05)	-17.31
Holley	$613.51 million	0.50	$19.17 million	$0.08	31.81

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ECARX and Holley, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECARX	1	1	0	0	1.50
Holley	1	3	3	0	2.29

Holley has a consensus target price of $4.90, indicating a potential upside of 92.53%. Given Holley’s stronger consensus rating and higher probable upside, analysts plainly believe Holley is more favorable than ECARX.

Insider & Institutional Ownership

39.7% of Holley shares are held by institutional investors. 20.0% of ECARX shares are held by insiders. Comparatively, 4.9% of Holley shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

ECARX has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Holley has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Profitability

This table compares ECARX and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECARX	-2.25%	N/A	-2.75%
Holley	1.68%	8.41%	3.23%

Summary

Holley beats ECARX on 12 of the 14 factors compared between the two stocks.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.