Head to Head Contrast: Mercedes-Benz Group (OTCMKTS:MBGYY) & NIO (NYSE:NIO)

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

Volatility and Risk

Mercedes-Benz Group has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, NIO has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	6.99%	10.90%	3.84%
NIO	-33.41%	-113.83%	-19.82%

Insider and Institutional Ownership

48.5% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Mercedes-Benz Group and NIO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.36	$15.43 billion	C$2.76	5.30
NIO	$65.73 billion	0.12	-$2.94 billion	($1.53)	-2.49

Mercedes-Benz Group has higher revenue and earnings than NIO. NIO 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.

Analyst Ratings

This is a summary of recent recommendations for Mercedes-Benz Group and NIO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	5	0	0	2.00
NIO	2	8	1	1	2.08

NIO has a consensus target price of $5.00, suggesting a potential upside of 31.06%. Given NIO’s stronger consensus rating and higher possible upside, analysts clearly believe NIO is more favorable than Mercedes-Benz Group.

Summary

Mercedes-Benz Group beats NIO on 8 of the 15 factors compared between the two stocks.

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.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.