Analyzing Harley-Davidson (NYSE:HOG) and XPENG (NYSE:XPEV)

XPENG (NYSE:XPEV) and Harley-Davidson (NYSE:HOG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for XPENG and Harley-Davidson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPENG	4	0	4	2	2.40
Harley-Davidson	2	5	4	1	2.33

XPENG presently has a consensus target price of $25.70, indicating a potential upside of 110.66%. Harley-Davidson has a consensus target price of $26.78, indicating a potential downside of 5.11%. Given XPENG’s stronger consensus rating and higher probable upside, equities analysts plainly believe XPENG is more favorable than Harley-Davidson.

Insider and Institutional Ownership

21.1% of XPENG shares are held by institutional investors. Comparatively, 85.1% of Harley-Davidson shares are held by institutional investors. 27.6% of XPENG shares are held by company insiders. Comparatively, 1.0% of Harley-Davidson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPENG	-3.09%	-7.72%	-2.33%
Harley-Davidson	4.78%	6.28%	2.45%

Risk and Volatility

XPENG has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares XPENG and Harley-Davidson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPENG	$10.97 billion	1.06	-$158.50 million	($0.34)	-35.88
Harley-Davidson	$4.24 billion	0.69	$338.74 million	$1.63	17.31

Harley-Davidson has lower revenue, but higher earnings than XPENG. XPENG 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 XPENG on 8 of the 14 factors compared between the two stocks.

About XPENG

XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People's Republic of China. It offers SUVs under the G3, G3i, and G9 names; four-door sports sedans under the P7 and P7i names; and family sedans under the P5 name. The company also provides sales contracts, super charging, maintenance, technical support, auto financing, insurance, technology support, ride-hailing, automotive loan referral, and other services, as well as vehicle leasing and insurance agency services. In addition, it offers advanced driver-assistance system technology and in-car intelligent operating system; and vehicle systems comprising powertrains, and the electrical and electronic architecture. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, the People's Republic of China.

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.