Critical Analysis: Hyundai Motor (OTCMKTS:HYMLF) vs. NIO (NYSE:NIO)

NIO (NYSE:NIO) and Hyundai Motor (OTCMKTS:HYMLF) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

48.5% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares NIO and Hyundai Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-3.95%	-111.37%	-3.62%
Hyundai Motor	4.31%	6.25%	2.17%

Earnings & Valuation

This table compares NIO and Hyundai Motor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$12.51 billion	0.66	-$2.14 billion	($0.27)	-12.24
Hyundai Motor	$131.12 billion	0.15	$6.61 billion	$21.38	4.16

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

Analyst Ratings

This is a breakdown of current recommendations for NIO and Hyundai Motor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	6	0	2.27
Hyundai Motor	0	1	0	0	2.00

NIO presently has a consensus target price of $5.78, indicating a potential upside of 74.82%. Given NIO’s stronger consensus rating and higher probable upside, equities research analysts plainly believe NIO is more favorable than Hyundai Motor.

Summary

Hyundai Motor beats NIO on 7 of the 13 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About Hyundai Motor

Hyundai Motor Company, together with its subsidiaries, manufactures and distributes motor vehicles and parts. It operates through Vehicle, Finance, and Others segments. The company offers cars under the Azera, Sonata, Veloster, Veloster N, i30 Fastback N, i30 N, i30, Elantra, Accent, i20, and i10 names; and SUVs under the Palisade, Santa Fe, Tucson, Creta, Kona, and Venue names. It also provides commercial vehicles under the H-1 and H-100 names; and eco vehicles under the IONIQ 5, NEXO, Santa Fe Hybrid/Plug-in Hybrid, Tucson Hybrid, KONA Electric, Elantra Hybrid, IONIQ Plug-in Hybrid, IONIQ Electric, IONIQ Electric, and i30 Hybrid names. In addition, the company offers trucks, buses, vans, and engines; vehicle financing, credit card processing, marketing, engineering, mobility, and insurance services; and train manufacturing services, as well as operates a football club. Further, it is involved in real estate development; research and development; and investment activities. The company was incorporated in 1967 and is headquartered in Seoul, South Korea.