Lotus Technology (NASDAQ:LOT – Get Free Report) and Toyota Motor (NYSE:TM – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Profitability
This table compares Lotus Technology and Toyota Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lotus Technology | N/A | N/A | -41.65% |
| Toyota Motor | 10.70% | 14.32% | 5.64% |
Analyst Ratings
This is a summary of current ratings and target prices for Lotus Technology and Toyota Motor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
| Toyota Motor | 0 | 2 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 1.5% of Toyota Motor shares are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Lotus Technology and Toyota Motor’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lotus Technology | $832.97 million | 0.48 | -$742.00 million | ($0.84) | -7.02 |
| Toyota Motor | $46,386.37 billion | 0.00 | $34.12 billion | $25.39 | 6.67 |
Toyota Motor has higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than Toyota Motor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Lotus Technology has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Summary
Toyota Motor beats Lotus Technology on 8 of the 12 factors compared between the two stocks.
About Lotus Technology
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.
About Toyota Motor
Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.
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