Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) and Continental (OTCMKTS:CTTAY – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Volatility & Risk
Faraday Future Intelligent Electric has a beta of 5.38, meaning that its stock price is 438% more volatile than the S&P 500. Comparatively, Continental has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Profitability
This table compares Faraday Future Intelligent Electric and Continental’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Faraday Future Intelligent Electric | -74,517.13% | -518.14% | -91.88% |
| Continental | 0.91% | 1.14% | 0.34% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Faraday Future Intelligent Electric | $540,000.00 | 164.28 | -$355.85 million | ($1.84) | -0.25 |
| Continental | $22.26 billion | 0.67 | $1.26 billion | $0.16 | 46.25 |
Continental has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than Continental, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.7% of Faraday Future Intelligent Electric shares are owned by institutional investors. Comparatively, 0.0% of Continental shares are owned by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Faraday Future Intelligent Electric and Continental, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
| Continental | 1 | 5 | 3 | 0 | 2.22 |
Faraday Future Intelligent Electric currently has a consensus target price of $5.00, indicating a potential upside of 1,008.65%. Given Faraday Future Intelligent Electric’s higher possible upside, research analysts clearly believe Faraday Future Intelligent Electric is more favorable than Continental.
Summary
Continental beats Faraday Future Intelligent Electric on 9 of the 14 factors compared between the two stocks.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
About Continental
Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
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