Nikola (OTCMKTS:NKLAQ – Get Free Report) and Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Volatility and Risk
Nikola has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Global X Autonomous & Electric Vehicles ETF has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares Nikola and Global X Autonomous & Electric Vehicles ETF”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nikola | $68.86 million | 0.01 | -$958.23 million | ($17.49) | 0.00 |
| Global X Autonomous & Electric Vehicles ETF | N/A | N/A | N/A | ($0.28) | -145.54 |
Global X Autonomous & Electric Vehicles ETF has lower revenue, but higher earnings than Nikola. Global X Autonomous & Electric Vehicles ETF is trading at a lower price-to-earnings ratio than Nikola, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nikola and Global X Autonomous & Electric Vehicles ETF’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nikola | N/A | N/A | N/A |
| Global X Autonomous & Electric Vehicles ETF | N/A | N/A | N/A |
Institutional & Insider Ownership
37.4% of Nikola shares are held by institutional investors. Comparatively, 80.8% of Global X Autonomous & Electric Vehicles ETF shares are held by institutional investors. 0.7% of Nikola shares are held by insiders. Comparatively, 3.5% of Global X Autonomous & Electric Vehicles ETF shares 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.
Analyst Recommendations
This is a summary of recent ratings for Nikola and Global X Autonomous & Electric Vehicles ETF, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nikola | 0 | 0 | 0 | 0 | 0.00 |
| Global X Autonomous & Electric Vehicles ETF | 0 | 4 | 1 | 0 | 2.62 |
Global X Autonomous & Electric Vehicles ETF has a consensus price target of $40.75, indicating a potential upside of 0.00%. Given Global X Autonomous & Electric Vehicles ETF’s stronger consensus rating and higher possible upside, analysts plainly believe Global X Autonomous & Electric Vehicles ETF is more favorable than Nikola.
Summary
Global X Autonomous & Electric Vehicles ETF beats Nikola on 6 of the 9 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 Global X Autonomous & Electric Vehicles ETF
The Global X Autonomous & Electric Vehicles ETF (DRIV) is an exchange-traded fund that mostly invests in stocks based on a particular theme. The fund tracks an index that uses artificial intelligence to select global stocks involved in the development, production, or supporting technology of autonomous and electronic vehicles. DRIV was launched on Apr 13, 2018 and is issued by Global X.
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