Head-To-Head Analysis: Lotus Technology (NASDAQ:LOT) vs. Toyota Motor (NYSE:TM)

Toyota Motor (NYSE:TM) and Lotus Technology (NASDAQ:LOT) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Toyota Motor and Lotus Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	0	2	0	0	2.00
Lotus Technology	0	1	0	0	2.00

Lotus Technology has a consensus price target of $7.00, indicating a potential upside of 24.78%. Given Lotus Technology’s higher possible upside, analysts clearly believe Lotus Technology is more favorable than Toyota Motor.

Profitability

This table compares Toyota Motor and Lotus Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	10.99%	14.82%	5.82%
Lotus Technology	N/A	N/A	-41.65%

Risk and Volatility

Toyota Motor has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Lotus Technology has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Institutional & Insider Ownership

1.5% of Toyota Motor shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 0.2% of Lotus Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Toyota Motor and Lotus Technology’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$312.38 billion	0.83	$34.12 billion	$25.39	7.60
Lotus Technology	$679.01 million	0.56	-$742.00 million	($0.84)	-6.68

Toyota Motor has higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than Toyota Motor, indicating that it is currently the more affordable of the two stocks.

Summary

Toyota Motor beats Lotus Technology on 8 of the 11 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

About Lotus Technology

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.