Thunder Power (NASDAQ:AIEV) and NIO (NYSE:NIO) Critical Review

Thunder Power (NASDAQ:AIEV) and NIO (NYSE:NIO) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Thunder Power has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, NIO has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Thunder Power and NIO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Power	0	0	0	0	0.00
NIO	2	4	6	1	2.46

NIO has a consensus target price of $6.57, suggesting a potential upside of 50.69%. Given NIO’s stronger consensus rating and higher probable upside, analysts plainly believe NIO is more favorable than Thunder Power.

Insider and Institutional Ownership

65.0% of Thunder Power shares are held by institutional investors. Comparatively, 48.5% of NIO shares are held by institutional investors. 5.1% of Thunder Power shares are held by insiders. Comparatively, 1.0% of NIO 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.

Profitability

This table compares Thunder Power and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Power	N/A	N/A	N/A
NIO	-8.78%	-318.96%	-7.67%

Earnings and Valuation

This table compares Thunder Power and NIO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Power	N/A	N/A	N/A	($0.05)	-3.80
NIO	$12.51 billion	0.87	-$2.14 billion	($0.55)	-7.93

Thunder Power has higher earnings, but lower revenue than NIO. NIO is trading at a lower price-to-earnings ratio than Thunder Power, indicating that it is currently the more affordable of the two stocks.

Summary

Thunder Power beats NIO on 7 of the 13 factors compared between the two stocks.

About Thunder Power

Thunder Power Holdings Limited manufactures passenger electric vehicles. Thunder Power Holdings Limited was founded in 2013 and is based in Kowloon, Hong Kong. Thunder Power Hong Kong Limited operates as a subsidiary of Electric Power Technology Limited.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.