Aptiv (NYSE:APTV) and Faraday Future Intelligent Electric (NASDAQ:FFAI) Critical Survey

Faraday Future Intelligent Electric (NASDAQ:FFAI) and Aptiv (NYSE:APTV) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Faraday Future Intelligent Electric and Aptiv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Faraday Future Intelligent Electric	1	1	1	0	2.00
Aptiv	0	6	14	0	2.70

Faraday Future Intelligent Electric currently has a consensus price target of $5.00, suggesting a potential upside of 870.87%. Aptiv has a consensus price target of $100.60, suggesting a potential upside of 30.58%. Given Faraday Future Intelligent Electric’s higher probable upside, equities analysts plainly believe Faraday Future Intelligent Electric is more favorable than Aptiv.

Valuation and Earnings

This table compares Faraday Future Intelligent Electric and Aptiv”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Faraday Future Intelligent Electric	$540,000.00	187.59	-$355.85 million	($1.84)	-0.28
Aptiv	$20.40 billion	0.80	$165.00 million	$0.76	101.37

Aptiv has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Faraday Future Intelligent Electric and Aptiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Faraday Future Intelligent Electric	-74,517.13%	-518.14%	-91.88%
Aptiv	0.81%	18.22%	7.35%

Risk and Volatility

Faraday Future Intelligent Electric has a beta of 5.24, indicating that its share price is 424% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 94.2% of Aptiv shares are held by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are held by insiders. Comparatively, 0.5% of Aptiv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Aptiv beats Faraday Future Intelligent Electric on 11 of the 14 factors compared between the two stocks.

About Faraday Future Intelligent Electric

Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.