REE Automotive (NASDAQ:REE – Get Free Report) and Holley (NYSE:HLLY – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
12.7% of REE Automotive shares are owned by institutional investors. Comparatively, 39.7% of Holley shares are owned by institutional investors. 4.9% of Holley shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for REE Automotive and Holley, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| REE Automotive | 1 | 0 | 0 | 0 | 1.00 |
| Holley | 1 | 3 | 3 | 0 | 2.29 |
Earnings & Valuation
This table compares REE Automotive and Holley”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| REE Automotive | $1.30 million | 1.87 | -$55.81 million | ($5.28) | -0.01 |
| Holley | $613.51 million | 0.49 | $19.17 million | $0.08 | 30.94 |
Holley has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
REE Automotive has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Holley has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.
Profitability
This table compares REE Automotive and Holley’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| REE Automotive | N/A | N/A | N/A |
| Holley | 1.68% | 8.41% | 3.23% |
Summary
Holley beats REE Automotive on 12 of the 14 factors compared between the two stocks.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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.
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