Head to Head Comparison: Lotus Technology (NASDAQ:LOT) versus Mercedes-Benz Group (OTCMKTS:MBGYY)

Lotus Technology (NASDAQ:LOT) and Mercedes-Benz Group (OTCMKTS:MBGYY) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Earnings & Valuation

This table compares Lotus Technology and Mercedes-Benz Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lotus Technology	$1.01 billion	2.28	-$742.00 million	($1.56)	-2.19
Mercedes-Benz Group	$165.81 billion	N/A	$15.43 billion	C$2.88	5.15

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

Institutional and Insider Ownership

63.4% of Lotus Technology shares are held by institutional investors. 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Lotus Technology has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Lotus Technology and Mercedes-Benz Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lotus Technology	-87.61%	N/A	-38.53%
Mercedes-Benz Group	7.36%	11.66%	4.11%

Analyst Ratings

This is a summary of current recommendations for Lotus Technology and Mercedes-Benz Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lotus Technology	0	1	0	0	2.00
Mercedes-Benz Group	1	2	0	0	1.67

Lotus Technology currently has a consensus target price of $7.00, suggesting a potential upside of 105.28%. Given Lotus Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Lotus Technology is more favorable than Mercedes-Benz Group.

Summary

Mercedes-Benz Group beats Lotus Technology on 8 of the 12 factors compared between the two stocks.

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.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.