Financial Analysis: Faraday Future Intelligent Electric (FFAI) versus Its Rivals

Faraday Future Intelligent Electric (NASDAQ:FFAI) is one of 71 publicly-traded companies in the “AUTO/TRUCK – ORIG” industry, but how does it contrast to its competitors? We will compare Faraday Future Intelligent Electric to similar companies based on the strength of its dividends, institutional ownership, profitability, valuation, risk, analyst recommendations and earnings.

Risk and Volatility

Faraday Future Intelligent Electric has a beta of 4.55, indicating that its share price is 355% more volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric’s competitors have a beta of 3.25, indicating that their average share price is 225% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Faraday Future Intelligent Electric and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Faraday Future Intelligent Electric	1	1	0	0	1.50
Faraday Future Intelligent Electric Competitors	673	3356	4633	230	2.50

As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 19.04%. Given Faraday Future Intelligent Electric’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Faraday Future Intelligent Electric has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Faraday Future Intelligent Electric and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Faraday Future Intelligent Electric	$540,000.00	-$355.85 million	-0.40
Faraday Future Intelligent Electric Competitors	$8.19 billion	$183.45 million	28.94

Faraday Future Intelligent Electric’s competitors have higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 66.2% of shares of all “AUTO/TRUCK – ORIG” companies are held by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are held by insiders. Comparatively, 7.9% of shares of all “AUTO/TRUCK – ORIG” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Faraday Future Intelligent Electric	-54,380.62%	-187.07%	-52.34%
Faraday Future Intelligent Electric Competitors	-1,704.31%	-13.35%	-4.64%

Summary

Faraday Future Intelligent Electric competitors beat Faraday Future Intelligent Electric on 11 of the 13 factors compared.

Faraday Future Intelligent Electric Company Profile

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.