Reviewing Nissan Motor (OTCMKTS:NSANY) & XPENG (NYSE:XPEV)

Nissan Motor (OTCMKTS:NSANY) and XPENG (NYSE:XPEV) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Nissan Motor and XPENG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nissan Motor	-3.38%	-5.50%	-1.47%
XPENG	-4.19%	-10.99%	-3.15%

Risk and Volatility

Nissan Motor has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, XPENG has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

21.1% of XPENG shares are held by institutional investors. 27.6% of XPENG shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nissan Motor and XPENG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nissan Motor	$79.77 billion	0.08	-$3.52 billion	($1.53)	-2.27
XPENG	$10.97 billion	0.86	-$158.50 million	($0.48)	-20.61

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Nissan Motor and XPENG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nissan Motor	0	2	0	0	2.00
XPENG	4	2	5	0	2.09

XPENG has a consensus target price of $19.13, suggesting a potential upside of 93.36%. Given XPENG’s stronger consensus rating and higher probable upside, analysts clearly believe XPENG is more favorable than Nissan Motor.

Summary

XPENG beats Nissan Motor on 9 of the 14 factors compared between the two stocks.

About Nissan Motor

Nissan Motor Co. is a Japanese automaker that designs, manufactures and sells passenger cars, sport utility vehicles, pickup trucks and electric vehicles. Its vehicle brands include Nissan and Infiniti, and the company also provides automotive parts and related services. Founded in 1933 and headquartered in Yokohama, Japan, Nissan serves customers in markets around the world. Its business also includes automotive financing and other mobility-related services.

About XPENG

XPENG Inc. is a Chinese electric vehicle company that designs, develops, manufactures and sells smart electric vehicles. Founded in 2014 and headquartered in Guangzhou, the company focuses on combining vehicle engineering with software and technology features. Its product lineup includes electric sedans, SUVs and multipurpose vehicles. XPENG also develops driver-assistance technologies, in-car software and related services, and operates charging infrastructure to support its vehicles. The company primarily serves customers in China and has expanded into international markets.