Head to Head Analysis: XPeng (NYSE:XPEV) vs. Mercedes-Benz Group (OTCMKTS:MBGYY)

Mercedes-Benz Group (OTCMKTS:MBGYY) and XPeng (NYSE:XPEV) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Earnings and Valuation

This table compares Mercedes-Benz Group and XPeng”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.35	$15.43 billion	C$2.76	5.24
XPeng	$40.87 billion	0.48	-$1.47 billion	($0.85)	-24.66

Mercedes-Benz Group has higher revenue and earnings than XPeng. XPeng 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.

Profitability

This table compares Mercedes-Benz Group and XPeng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	6.99%	10.90%	3.84%
XPeng	-15.35%	-16.92%	-7.37%

Institutional and Insider Ownership

21.1% of XPeng shares are owned by institutional investors. 27.6% of XPeng shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Mercedes-Benz Group has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, XPeng has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Mercedes-Benz Group and XPeng, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	5	0	0	2.00
XPeng	1	6	5	1	2.46

XPeng has a consensus target price of $22.20, suggesting a potential upside of 5.89%. Given XPeng’s stronger consensus rating and higher probable upside, analysts plainly believe XPeng is more favorable than Mercedes-Benz Group.

Summary

XPeng beats Mercedes-Benz Group on 8 of the 15 factors compared between the two stocks.

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.

About XPeng

XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People's Republic of China. It offers SUVs under the G3, G3i, and G9 names; four-door sports sedans under the P7 and P7i names; and family sedans under the P5 name. The company also provides sales contracts, super charging, maintenance, technical support, auto financing, insurance, technology support, ride-hailing, automotive loan referral, and other services, as well as vehicle leasing and insurance agency services. In addition, it offers advanced driver-assistance system technology and in-car intelligent operating system; and vehicle systems comprising powertrains, and the electrical and electronic architecture. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, the People's Republic of China.