Contrasting AYRO (NASDAQ:AYRO) and PACCAR (NASDAQ:PCAR)

AYRO (NASDAQ:AYRO) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares AYRO and PACCAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AYRO	$5,426.00	584.68	-$1.75 million	($4.30)	-1.09
PACCAR	$33.66 billion	1.55	$4.16 billion	$5.84	16.96

PACCAR has higher revenue and earnings than AYRO. AYRO is trading at a lower price-to-earnings ratio than PACCAR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AYRO and PACCAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AYRO	N/A	-1,213.64%	-88.32%
PACCAR	9.88%	18.25%	7.69%

Insider & Institutional Ownership

5.7% of AYRO shares are owned by institutional investors. Comparatively, 64.9% of PACCAR shares are owned by institutional investors. 2.0% of AYRO shares are owned by insiders. Comparatively, 2.0% of PACCAR shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AYRO and PACCAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AYRO	0	0	0	0	0.00
PACCAR	0	8	4	2	2.57

PACCAR has a consensus price target of $107.68, suggesting a potential upside of 8.71%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts clearly believe PACCAR is more favorable than AYRO.

Risk and Volatility

AYRO has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Summary

PACCAR beats AYRO on 13 of the 15 factors compared between the two stocks.

About AYRO

Ayro, Inc. designs, manufactures, and sells electric vehicles for closed campus mobility, urban and community transport, local on-demand and last mile delivery, and government use in the United States. It provides four-wheeled purpose-built electric vehicles for universities, business and medical campuses, last mile delivery services, and food service providers. The company also offers vehicles as an alternative to internal combustion engine vehicles for light duty uses, including low-speed logistics, maintenance, and cargo services; and designs and develops AYRO Vanish fleet of low speed electric vehicle. The company was formerly known as AEV Technologies, Inc. Ayro, Inc. was founded in 2017 and is headquartered in Round Rock, Texas.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.