Critical Contrast: Isuzu Motors (OTCMKTS:ISUZF) versus Rivian Automotive (NASDAQ:RIVN)

Rivian Automotive (NASDAQ:RIVN) and Isuzu Motors (OTCMKTS:ISUZF) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rivian Automotive and Isuzu Motors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rivian Automotive	6	8	13	0	2.26
Isuzu Motors	0	0	0	0	0.00

Rivian Automotive currently has a consensus target price of $18.95, suggesting a potential upside of 23.48%. Given Rivian Automotive’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Rivian Automotive is more favorable than Isuzu Motors.

Institutional & Insider Ownership

66.2% of Rivian Automotive shares are held by institutional investors. Comparatively, 14.5% of Isuzu Motors shares are held by institutional investors. 1.5% of Rivian Automotive shares are held 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.

Earnings and Valuation

This table compares Rivian Automotive and Isuzu Motors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rivian Automotive	$5.39 billion	3.88	-$3.65 billion	($2.58)	-5.95
Isuzu Motors	N/A	N/A	N/A	$132.79	0.10

Isuzu Motors has lower revenue, but higher earnings than Rivian Automotive. Rivian Automotive is trading at a lower price-to-earnings ratio than Isuzu Motors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rivian Automotive and Isuzu Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rivian Automotive	-54.96%	-73.90%	-23.91%
Isuzu Motors	N/A	N/A	N/A

Summary

Rivian Automotive beats Isuzu Motors on 6 of the 11 factors compared between the two stocks.

About Rivian Automotive

Rivian Automotive, Inc., together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name. It provides consumer services, such as digital financing and leasing, telematics-based insurance, vehicle maintenance and repair services, software services, and charging solutions. In addition, the company designs, develops, manufactures, and operates the Rivian Adventure Network Direct Current fast chargers, and offers access to Combined Charging Standard, as well as FleetOS, a proprietary, end-to-end centralized fleet management subscription platform. Further, it offers Rivian Commercial Van platform for Electric Delivery Van with collaboration with Amazon.com, Inc. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.

About Isuzu Motors

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, and SUVs; and marine and industrial engines. The company also supplies diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and logistics management activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Yokohama-shi, Japan.