Harley-Davidson (NYSE:HOG) and Arcimoto (NASDAQ:FUV) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
Harley-Davidson has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Arcimoto has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.
Institutional and Insider Ownership
87.8% of Harley-Davidson shares are owned by institutional investors. Comparatively, 0.7% of Arcimoto shares are owned by institutional investors. 0.6% of Harley-Davidson shares are owned by insiders. Comparatively, 56.3% of Arcimoto shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Harley-Davidson and Arcimoto’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Harley-Davidson pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Arcimoto does not pay a dividend. Harley-Davidson pays out 42.3% of its earnings in the form of a dividend. Harley-Davidson has raised its dividend for 7 consecutive years.
This is a breakdown of current ratings and price targets for Harley-Davidson and Arcimoto, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harley-Davidson currently has a consensus target price of $44.08, suggesting a potential upside of 4.24%. Arcimoto has a consensus target price of $9.00, suggesting a potential upside of 318.60%. Given Arcimoto’s stronger consensus rating and higher possible upside, analysts clearly believe Arcimoto is more favorable than Harley-Davidson.
Earnings & Valuation
This table compares Harley-Davidson and Arcimoto’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harley-Davidson||$5.65 billion||1.22||$521.75 million||$3.50||12.08|
Harley-Davidson has higher revenue and earnings than Arcimoto. Arcimoto is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.
Harley-Davidson beats Arcimoto on 12 of the 17 factors compared between the two stocks.
Harley-Davidson, Inc. primarily manufactures and sells cruiser and touring motorcycles. The company operates in two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment designs, manufactures, and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services. It offers motorcycle parts and accessories, such as replacement parts, and mechanical and cosmetic accessories; and general merchandise, including MotorClothes apparel and riding gear, as well as licenses the Harley-Davidson name and other trademarks. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. The Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and motorcycle parts and accessories; and retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products comprising motorcycle insurance, extended service contracts, and motorcycle maintenance protection. This segment also licenses the Harley-Davidson brand to third-party financial institutions. The company was founded in 1903 and is based in Milwaukee, Wisconsin.
Arcimoto, Inc. designs, develops, manufactures, and sells three-wheeled electric vehicles. The company was formerly known as WTP Inc and changed its name to Arcimoto, Inc. in December 2011. Arcimoto, Inc. was founded in 2007 and is headquartered in Eugene, Oregon.
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