Financial Analysis: Lucid Group (NASDAQ:LCID) vs. Harley-Davidson (NYSE:HOG)

Harley-Davidson (NYSE:HOGGet Free Report) and Lucid Group (NASDAQ:LCIDGet Free Report) are both mid-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Harley-Davidson 11.37% 15.19% 4.28%
Lucid Group -224.99% -85.13% -26.23%

Institutional and Insider Ownership

85.1% of Harley-Davidson shares are held by institutional investors. Comparatively, 75.2% of Lucid Group shares are held by institutional investors. 0.9% of Harley-Davidson shares are held by company insiders. Comparatively, 64.0% of Lucid Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Harley-Davidson and Lucid Group”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harley-Davidson $5.19 billion 0.45 $455.36 million $4.12 4.85
Lucid Group $807.83 million 4.41 -$2.71 billion ($10.71) -1.03

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

Volatility & Risk

Harley-Davidson has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Lucid Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Harley-Davidson and Lucid Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harley-Davidson 1 6 2 0 2.11
Lucid Group 5 5 2 0 1.75

Harley-Davidson presently has a consensus target price of $27.00, indicating a potential upside of 35.16%. Lucid Group has a consensus target price of $18.92, indicating a potential upside of 72.02%. Given Lucid Group’s higher probable upside, analysts plainly believe Lucid Group is more favorable than Harley-Davidson.

Summary

Harley-Davidson beats Lucid Group on 10 of the 13 factors compared between the two stocks.

About Harley-Davidson

(Get Free Report)

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.

About Lucid Group

(Get Free Report)

Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.

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