Head-To-Head Analysis: Lion Electric (NYSE:LEV) vs. Mullen Automotive (NASDAQ:MULN)

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

Analyst Recommendations

This is a summary of recent recommendations for Mullen Automotive and Lion Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mullen Automotive	0	0	0	0	N/A
Lion Electric	0	7	1	1	2.33

Lion Electric has a consensus target price of $1.52, indicating a potential upside of 130.52%. Given Lion Electric’s higher possible upside, analysts clearly believe Lion Electric is more favorable than Mullen Automotive.

Risk and Volatility

Mullen Automotive has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Lion Electric has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500.

Institutional and Insider Ownership

11.7% of Mullen Automotive shares are held by institutional investors. Comparatively, 52.7% of Lion Electric shares are held by institutional investors. 1.3% of Mullen Automotive shares are held by insiders. Comparatively, 16.6% of Lion Electric shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mullen Automotive	N/A	N/A	N/A
Lion Electric	-51.81%	-26.26%	-11.31%

Earnings & Valuation

This table compares Mullen Automotive and Lion Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mullen Automotive	$156,570.00	218.09	-$972.26 million	N/A	N/A
Lion Electric	$253.50 million	0.59	-$103.77 million	($0.53)	-1.25

Lion Electric has higher revenue and earnings than Mullen Automotive.

Summary

Lion Electric beats Mullen Automotive on 8 of the 12 factors compared between the two stocks.

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.

About Lion Electric

The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It distributes truck and bus parts, as well as accessories. The company was incorporated in 2008 and is based in Saint-Jérôme, Canada.