Reviewing Fisker (NYSE:FSRN) & Subaru (OTCMKTS:FUJHY)

Subaru (OTCMKTS:FUJHY) and Fisker (NYSE:FSRN) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility & Risk

Subaru has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Fisker has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Profitability

This table compares Subaru and Fisker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subaru	7.63%	15.18%	8.14%
Fisker	-278.72%	-161.43%	-23.26%

Earnings & Valuation

This table compares Subaru and Fisker’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$27.94 billion	0.56	$1.48 billion	$1.60	6.53
Fisker	$272.89 million	0.31	-$939.95 million	($2.22)	-0.03

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Subaru and Fisker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	0	1	0	0	2.00
Fisker	0	0	0	0	N/A

Insider and Institutional Ownership

0.0% of Subaru shares are owned by institutional investors. Comparatively, 33.6% of Fisker shares are owned by institutional investors. 26.3% of Fisker shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Subaru beats Fisker on 9 of the 11 factors compared between the two stocks.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.

About Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.