Vroom (NASDAQ:VRM – Get Free Report) and VinFast Auto (NASDAQ:VFS – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Profitability
This table compares Vroom and VinFast Auto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -37.16% | -51.07% | -6.63% |
| VinFast Auto | -107.40% | N/A | -55.03% |
Analyst Recommendations
This is a breakdown of recent ratings for Vroom and VinFast Auto, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| VinFast Auto | 1 | 0 | 3 | 0 | 2.50 |
Insider & Institutional Ownership
25.8% of Vroom shares are owned by institutional investors. 2.9% of Vroom shares are owned by company insiders. Comparatively, 16.2% of VinFast Auto shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Vroom has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Earnings and Valuation
This table compares Vroom and VinFast Auto”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vroom | $178.83 million | 0.27 | -$7.96 million | ($12.76) | -0.74 |
| VinFast Auto | $3.60 billion | 2.09 | -$3.96 billion | ($1.66) | -1.93 |
Vroom has higher earnings, but lower revenue than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Vroom, indicating that it is currently the more affordable of the two stocks.
Summary
VinFast Auto beats Vroom on 8 of the 14 factors compared between the two stocks.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
About VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
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