Head to Head Contrast: Subaru (OTCMKTS:FUJHY) vs. REE Automotive (NASDAQ:REE)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for REE Automotive and Subaru, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	1	0	2	1	2.75
Subaru	0	0	0	0	0.00

REE Automotive currently has a consensus target price of $14.50, indicating a potential upside of 78.13%. Given REE Automotive’s stronger consensus rating and higher possible upside, equities analysts clearly believe REE Automotive is more favorable than Subaru.

Earnings and Valuation

This table compares REE Automotive and Subaru”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$825,000.00	103.68	-$114.21 million	($8.95)	-0.91
Subaru	$32.58 billion	0.35	$2.66 billion	$1.77	4.41

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

Profitability

This table compares REE Automotive and Subaru’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REE Automotive	-6,265.21%	-119.91%	-72.27%
Subaru	8.36%	15.69%	8.43%

Volatility & Risk

REE Automotive has a beta of 3.04, indicating that its share price is 204% more volatile than the S&P 500. Comparatively, Subaru has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

12.7% of REE Automotive shares are owned by institutional investors. Comparatively, 0.0% of Subaru shares are owned by institutional investors. 6.0% of REE Automotive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

REE Automotive beats Subaru on 8 of the 15 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.