General Motors (NYSE:GM) & Mullen Automotive (NASDAQ:MULN) Critical Review

Mullen Automotive (NASDAQ:MULN) and General Motors (NYSE:GM) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

11.7% of Mullen Automotive shares are owned by institutional investors. Comparatively, 92.7% of General Motors shares are owned by institutional investors. 1.3% of Mullen Automotive shares are owned by company insiders. Comparatively, 0.7% of General Motors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mullen Automotive and General Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mullen Automotive	N/A	N/A	N/A
General Motors	6.13%	14.40%	3.81%

Valuation and Earnings

This table compares Mullen Automotive and General Motors’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mullen Automotive	$370,000.00	78.33	-$972.26 million	N/A	N/A
General Motors	$174.87 billion	0.30	$10.13 billion	$8.18	5.57

General Motors has higher revenue and earnings than Mullen Automotive.

Analyst Ratings

This is a summary of recent ratings for Mullen Automotive and General Motors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mullen Automotive	0	0	0	0	N/A
General Motors	1	3	13	1	2.78

General Motors has a consensus price target of $54.91, indicating a potential upside of 20.44%. Given General Motors’ higher possible upside, analysts clearly believe General Motors is more favorable than Mullen Automotive.

Risk and Volatility

Mullen Automotive has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, General Motors has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Summary

General Motors beats Mullen Automotive on 9 of the 12 factors compared between the two stocks.

About Mullen Automotive

Mullen Automotive, Inc., an electric vehicle company, manufactures, sells, and distributes electric vehicles. Its products include passenger electric vehicles and commercial vehicles; and provides solid-state polymer battery technology. The company is headquartered in Brea, California.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.