Analyzing Volcon (NASDAQ:EMPD) & NIO (NYSE:NIO)

NIO (NYSE:NIO) and Volcon (NASDAQ:EMPD) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Profitability

This table compares NIO and Volcon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-3.95%	-111.37%	-3.62%
Volcon	-43,296.70%	-58.08%	-45.39%

Valuation and Earnings

This table compares NIO and Volcon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$12.51 billion	0.68	-$2.14 billion	($0.27)	-12.65
Volcon	$980,000.00	88.79	-$150.05 million	($1.05)	-2.94

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

Insider and Institutional Ownership

48.5% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by company insiders. Comparatively, 0.1% of Volcon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

NIO has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Volcon has a beta of -0.35, meaning that its stock price is 135% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for NIO and Volcon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	6	0	2.27
Volcon	1	1	1	1	2.50

NIO currently has a consensus price target of $5.87, suggesting a potential upside of 71.79%. Volcon has a consensus price target of $6.00, suggesting a potential upside of 94.17%. Given Volcon’s stronger consensus rating and higher possible upside, analysts plainly believe Volcon is more favorable than NIO.

Summary

NIO beats Volcon on 8 of the 15 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About Volcon

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.