Mullen Automotive (NASDAQ:MULN) vs. Nikola (NASDAQ:NKLA) Financial Analysis

Nikola (NASDAQ:NKLA) and Mullen Automotive (NASDAQ:MULN) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Nikola and Mullen Automotive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nikola	0	2	2	0	2.50
Mullen Automotive	0	0	0	0	N/A

Nikola presently has a consensus target price of $40.00, suggesting a potential upside of 388.40%. Given Nikola’s higher possible upside, analysts clearly believe Nikola is more favorable than Mullen Automotive.

Institutional and Insider Ownership

37.4% of Nikola shares are owned by institutional investors. Comparatively, 11.7% of Mullen Automotive shares are owned by institutional investors. 0.7% of Nikola shares are owned by company insiders. Comparatively, 1.3% of Mullen Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Nikola and Mullen Automotive’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nikola	$35.84 million	10.32	-$966.28 million	($31.83)	-0.26
Mullen Automotive	$370,000.00	74.01	-$972.26 million	N/A	N/A

Nikola has higher revenue and earnings than Mullen Automotive.

Volatility and Risk

Nikola has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Mullen Automotive has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Profitability

This table compares Nikola and Mullen Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nikola	N/A	-113.18%	-58.40%
Mullen Automotive	N/A	N/A	N/A

Summary

Nikola beats Mullen Automotive on 6 of the 10 factors compared between the two stocks.

About Nikola

Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona.

About Mullen Automotive

Mullen Automotive, Inc., an electric vehicle company, manufactures, sells, and distributes electric vehicles. Its products include passenger electric vehicles and commercial vehicles; and provides solid-state polymer battery technology. The company is headquartered in Brea, California.