Critical Analysis: LiveWire Group (NYSE:LVWR) vs. BYD (OTCMKTS:BYDDY)

BYD (OTCMKTS:BYDDY) and LiveWire Group (NYSE:LVWR) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares BYD and LiveWire Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BYD	N/A	N/A	N/A
LiveWire Group	-234.48%	-198.18%	-60.98%

Analyst Recommendations

This is a breakdown of current ratings and price targets for BYD and LiveWire Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD	0	1	0	0	2.00
LiveWire Group	1	0	0	0	1.00

Risk & Volatility

BYD has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, LiveWire Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Valuation & Earnings

This table compares BYD and LiveWire Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BYD	$111.84 billion	0.75	$4.54 billion	$0.57	16.40
LiveWire Group	$25.67 million	12.53	-$75.11 million	($0.37)	-4.23

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

Insider & Institutional Ownership

0.0% of BYD shares are held by institutional investors. Comparatively, 0.9% of LiveWire Group shares are held by institutional investors. 0.4% of LiveWire Group shares are held by 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.

Summary

BYD beats LiveWire Group on 8 of the 12 factors compared between the two stocks.

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.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.