NIO (NYSE:NIO – Get Free Report) and Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
NIO has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
Profitability
This table compares NIO and Mercedes-Benz Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NIO | -33.41% | -113.83% | -19.82% |
| Mercedes-Benz Group | 6.99% | 10.90% | 3.84% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NIO | $65.73 billion | 0.11 | -$2.94 billion | ($1.53) | -2.26 |
| Mercedes-Benz Group | $157.56 billion | 0.32 | $15.43 billion | C$2.76 | 4.78 |
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 Recommendations
This is a breakdown of current ratings and target prices for NIO and Mercedes-Benz Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NIO | 1 | 8 | 1 | 1 | 2.18 |
| Mercedes-Benz Group | 0 | 5 | 0 | 0 | 2.00 |
NIO currently has a consensus target price of $5.17, indicating a potential upside of 49.54%. Given NIO’s stronger consensus rating and higher possible upside, research analysts clearly believe NIO is more favorable than Mercedes-Benz Group.
Insider and Institutional Ownership
48.5% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Mercedes-Benz Group beats NIO on 8 of the 15 factors compared between the two stocks.
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.
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.
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