Reviewing Harley-Davidson (NYSE:HOG) and ECD Automotive Design (NASDAQ:ECDA)

ECD Automotive Design (NASDAQ:ECDA) and Harley-Davidson (NYSE:HOG) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ECD Automotive Design and Harley-Davidson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	1	0	0	0	1.00
Harley-Davidson	2	5	2	0	2.00

Harley-Davidson has a consensus price target of $24.25, indicating a potential upside of 18.78%. Given Harley-Davidson’s stronger consensus rating and higher probable upside, analysts plainly believe Harley-Davidson is more favorable than ECD Automotive Design.

Insider and Institutional Ownership

94.8% of ECD Automotive Design shares are held by institutional investors. Comparatively, 85.1% of Harley-Davidson shares are held by institutional investors. 17.8% of ECD Automotive Design shares are held by insiders. Comparatively, 0.9% of Harley-Davidson shares 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.

Profitability

This table compares ECD Automotive Design and Harley-Davidson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	-33.06%	N/A	-52.37%
Harley-Davidson	8.03%	10.27%	3.15%

Earnings & Valuation

This table compares ECD Automotive Design and Harley-Davidson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$24.50 million	0.00	-$10.77 million	($53.00)	0.00
Harley-Davidson	$4.47 billion	0.54	$455.36 million	$2.61	7.82

Harley-Davidson has higher revenue and earnings than ECD Automotive Design. ECD Automotive Design is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.

Summary

Harley-Davidson beats ECD Automotive Design on 11 of the 13 factors compared between the two stocks.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.

About Harley-Davidson

Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.