Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Profitability
This table compares Mercedes-Benz Group and REE Automotive’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% |
| REE Automotive | N/A | -134.95% | -68.63% |
Volatility & Risk
Mercedes-Benz Group has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 3.18, meaning that its stock price is 218% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercedes-Benz Group | 0 | 5 | 0 | 0 | 2.00 |
| REE Automotive | 0 | 0 | 2 | 1 | 3.33 |
REE Automotive has a consensus price target of $14.50, indicating a potential upside of 506.69%. Given REE Automotive’s stronger consensus rating and higher possible upside, analysts clearly believe REE Automotive is more favorable than Mercedes-Benz Group.
Insider and Institutional Ownership
12.7% of REE Automotive shares are owned by institutional investors. 6.0% of REE Automotive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Mercedes-Benz Group and REE Automotive”s gross 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 | 0.31 | $15.43 billion | C$2.76 | 4.63 |
| REE Automotive | $626,000.00 | 53.10 | -$114.21 million | ($9.12) | -0.26 |
Mercedes-Benz Group has higher revenue and earnings than REE Automotive. REE Automotive 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.
Summary
REE Automotive 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 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.
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