ECD Automotive Design (NASDAQ:ECDA) and NIO (NYSE:NIO) Critical Comparison

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

Volatility & Risk

ECD Automotive Design has a beta of -1.59, meaning that its share price is 259% less volatile than the S&P 500. Comparatively, NIO has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Earnings & Valuation

This table compares ECD Automotive Design and NIO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$25.73 million	1.00	-$1.60 million	N/A	N/A
NIO	$63.52 billion	0.16	-$2.94 billion	($1.51)	-3.24

ECD Automotive Design has higher earnings, but lower revenue than NIO.

Institutional & Insider Ownership

94.8% of ECD Automotive Design shares are held by institutional investors. Comparatively, 48.5% of NIO shares are held by institutional investors. 77.3% of ECD Automotive Design shares are held by insiders. Comparatively, 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ECD Automotive Design and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	N/A	N/A	N/A
NIO	-33.41%	-113.83%	-19.82%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ECD Automotive Design and NIO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	0	0	0	0	0.00
NIO	2	7	1	1	2.09

NIO has a consensus target price of $5.03, suggesting a potential upside of 2.94%. Given NIO’s stronger consensus rating and higher possible upside, analysts plainly believe NIO is more favorable than ECD Automotive Design.

Summary

ECD Automotive Design beats NIO on 7 of the 13 factors compared between the two stocks.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.

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.