Critical Survey: Lotus Technology (NASDAQ:LOT) versus BYD (OTCMKTS:BYDDY)

Lotus Technology (NASDAQ:LOT) and BYD (OTCMKTS:BYDDY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares Lotus Technology and BYD’s 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
BYD	N/A	N/A	N/A

Volatility and Risk

Lotus Technology has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, BYD has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Insider and Institutional Ownership

63.4% of Lotus Technology shares are owned by institutional investors. Comparatively, 0.0% of BYD shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lotus Technology and BYD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	1	0	0	0	1.00
BYD	0	1	0	0	2.00

Valuation and Earnings

This table compares Lotus Technology and BYD”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Technology	$519.10 million	0.93	-$464.22 million	($0.72)	-1.04
BYD	$111.84 billion	0.76	$4.54 billion	$0.57	16.70

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

Summary

BYD beats Lotus Technology on 5 of the 9 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 BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.