Reviewing Niu Technologies (NASDAQ:NIU) & Holley (NYSE:HLLY)

Holley (NYSE:HLLY) and Niu Technologies (NASDAQ:NIU) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Holley and Niu Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holley	$613.51 million	0.53	$19.17 million	$0.19	13.97
Niu Technologies	$616.02 million	0.36	-$5.63 million	($0.08)	-35.50

Holley has higher earnings, but lower revenue than Niu Technologies. Niu Technologies is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Holley and Niu Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Holley	3.89%	5.46%	2.09%
Niu Technologies	-0.94%	-4.37%	-1.35%

Insider and Institutional Ownership

39.7% of Holley shares are owned by institutional investors. Comparatively, 75.1% of Niu Technologies shares are owned by institutional investors. 4.9% of Holley shares are owned by company insiders. Comparatively, 10.2% of Niu Technologies shares are owned by company 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.

Volatility & Risk

Holley has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Niu Technologies has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Holley and Niu Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holley	0	2	4	0	2.67
Niu Technologies	1	1	0	0	1.50

Holley presently has a consensus target price of $4.90, suggesting a potential upside of 84.56%. Niu Technologies has a consensus target price of $3.50, suggesting a potential upside of 23.24%. Given Holley’s stronger consensus rating and higher possible upside, research analysts plainly believe Holley is more favorable than Niu Technologies.

Summary

Holley beats Niu Technologies on 11 of the 14 factors compared between the two stocks.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.

About Niu Technologies

Niu Technologies designs, manufactures, and sells electric scooters in the People’s Republic of China, Europe, and internationally. The company offers RQi, NQi, MQi, SQi, UQi, F, and Gova series smart electric scooters, motorcycles, mopeds, and bicycles; KQi series kick-scooters; BQi series e-bikes; and Niu Aero Sports Bicycles. It also provides accessories and spare parts under the NIU brand name comprising scooter accessories, such as raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, and locks; lifestyle accessories, which includes T-shirts, coats, jeans, hats, bags, jewelry, notebooks, badges, key chain, and mugs; and performance upgrade components consisting of upgraded wheels, shock absorbers, brake calipers, and carbon fiber body panels. In addition, the company operates NIU app, which provides online repair request, service station locator, theft reporting, smart check, smart services, scooter status, historical riding data, and key diagnostics, as well as NIU cover, which provides insurance services. It sells and services its products through city partners and franchised stores, distributors, third-party e-commerce platforms, and its online store. The company was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China.