Analyzing Lotus Technology (NASDAQ:LOT) & Geely Automobile (OTCMKTS:GELYF)
by Michael Walen · The Markets DailyGeely Automobile (OTCMKTS:GELYF – Get Free Report) and Lotus Technology (NASDAQ:LOT – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Geely Automobile and Lotus Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geely Automobile | 0 | 0 | 0 | 0 | 0.00 |
| Lotus Technology | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Geely Automobile and Lotus Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geely Automobile | N/A | N/A | N/A | $0.27 | 8.80 |
| Lotus Technology | $519.10 million | 1.47 | -$464.22 million | ($0.72) | -1.65 |
Geely Automobile has higher earnings, but lower revenue than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than Geely Automobile, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
14.9% of Geely Automobile shares are owned by institutional investors. Comparatively, 63.4% of Lotus Technology shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Geely Automobile and Lotus Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geely Automobile | N/A | N/A | N/A |
| Lotus Technology | -89.43% | N/A | -22.29% |
About Geely Automobile
Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People's Republic of China. The company engages in the research and development, production, marketing, and sale of passenger vehicles, automobile parts, and related automobile components, as well as provision of related after-sales and technical services. It also offers sedans, wagons, sport utility cars, and electric vehicles under the Geely, Geometry, and ZEEKR brands; vehicles design, technology consulting, general logistics, packing, and storage services; researches and develops technology; procures mechanical and electrical equipment, and automobile parts and components; and manufactures and sells vehicle engines. In addition, the company provides automotive design, software systems development, modular development, virtual engineering of intelligent electric vehicles, and mobility technology solutions; knock down kits; and engages in the preparation and construction of engine manufactory projects. It operates in Malaysia, Eastern Europe, the Middle East, Northern Europe, the Philippines, Central and South America, Africa, and internationally. Geely Automobile Holdings Limited is headquartered in Wan Chai, Hong Kong.
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.