Lucid Group (NASDAQ:LCID – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Risk and Volatility
Lucid Group has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Lucid Group and Vroom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucid Group | 4 | 6 | 1 | 0 | 1.73 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Lucid Group and Vroom”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucid Group | $1.35 billion | 1.86 | -$2.70 billion | ($13.19) | -0.49 |
| Vroom | $178.83 million | 0.21 | -$7.96 million | ($12.76) | -0.57 |
Vroom has lower revenue, but higher earnings than Lucid Group. Vroom is trading at a lower price-to-earnings ratio than Lucid Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lucid Group and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lucid Group | -248.09% | -304.01% | -41.43% |
| Vroom | -37.16% | -51.07% | -6.63% |
Institutional and Insider Ownership
75.2% of Lucid Group shares are held by institutional investors. Comparatively, 25.8% of Vroom shares are held by institutional investors. 60.0% of Lucid Group shares are held by insiders. Comparatively, 2.9% of Vroom shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Lucid Group beats Vroom on 8 of the 14 factors compared between the two stocks.
About Lucid Group
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.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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