Nikola (NASDAQ:NKLA – Get Free Report) and VinFast Auto (NASDAQ:VFS – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Profitability
This table compares Nikola and VinFast Auto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nikola | -840.44% | -95.73% | -46.23% |
| VinFast Auto | -160.97% | N/A | -43.11% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Nikola and VinFast Auto, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nikola | 0 | 3 | 1 | 0 | 2.25 |
| VinFast Auto | 0 | 1 | 1 | 1 | 3.00 |
Institutional & Insider Ownership
37.4% of Nikola shares are held by institutional investors. 0.7% of Nikola shares are held by company insiders. Comparatively, 16.2% of VinFast Auto shares are held by company 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.
Earnings and Valuation
This table compares Nikola and VinFast Auto”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nikola | $75.53 million | 0.15 | -$966.28 million | ($14.26) | -0.01 |
| VinFast Auto | $44,019.02 billion | 0.00 | -$2.40 billion | ($1.36) | -2.66 |
Nikola has higher earnings, but lower revenue than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Nikola, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Nikola has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Summary
VinFast Auto beats Nikola on 8 of the 14 factors compared between the two stocks.
About Nikola
Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.
About VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
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