PHINIA (NYSE:PHIN) & REE Automotive (NASDAQ:REE) Head to Head Contrast
by Danessa Lincoln · The Markets DailyPHINIA (NYSE:PHIN – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares PHINIA and REE Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PHINIA | 3.73% | 12.56% | 5.15% |
| REE Automotive | N/A | N/A | N/A |
Institutional & Insider Ownership
90.9% of PHINIA shares are held by institutional investors. Comparatively, 12.7% of REE Automotive shares are held by institutional investors. 2.0% of PHINIA shares are held by insiders. Comparatively, 6.0% of REE Automotive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares PHINIA and REE Automotive”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PHINIA | $3.48 billion | 0.75 | $130.00 million | $3.25 | 21.09 |
| REE Automotive | $180,000.00 | 83.48 | -$111.75 million | ($5.28) | -0.13 |
PHINIA has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than PHINIA, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PHINIA has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.61, meaning that its stock price is 161% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for PHINIA and REE Automotive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PHINIA | 0 | 5 | 3 | 1 | 2.56 |
| REE Automotive | 1 | 2 | 1 | 0 | 2.00 |
PHINIA currently has a consensus price target of $68.80, indicating a potential upside of 0.39%. REE Automotive has a consensus price target of $4.75, indicating a potential upside of 603.70%. Given REE Automotive’s higher possible upside, analysts plainly believe REE Automotive is more favorable than PHINIA.
Summary
PHINIA beats REE Automotive on 11 of the 15 factors compared between the two stocks.
About PHINIA
PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.