Critical Analysis: Lotus Technology (LOT) & Its Rivals

Lotus Technology (NASDAQ:LOT) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it compare to its competitors? We will compare Lotus Technology to related businesses based on the strength of its valuation, profitability, earnings, institutional ownership, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares Lotus Technology and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lotus Technology	$519.10 million	-$464.22 million	-0.38
Lotus Technology Competitors	$53.35 billion	$1.13 billion	7.34

Lotus Technology’s competitors have higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Lotus Technology and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	N/A	N/A	N/A
Lotus Technology Competitors	-1,522.34%	-123.40%	-11.66%

Insider and Institutional Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 39.2% of shares of all “Automobiles” companies are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Comparatively, 14.6% of shares of all “Automobiles” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Lotus Technology has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Lotus Technology’s competitors have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lotus Technology and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	1	0	0	0	1.00
Lotus Technology Competitors	2140	5145	6398	191	2.33

As a group, “Automobiles” companies have a potential upside of 65.40%. Given Lotus Technology’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Lotus Technology has less favorable growth aspects than its competitors.

Summary

Lotus Technology competitors beat Lotus Technology on 9 of the 13 factors compared.

Lotus Technology Company Profile

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.