Tesla (NASDAQ:TSLA – Get Free Report) and LiveWire Group (NYSE:LVWR – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
66.2% of Tesla shares are held by institutional investors. Comparatively, 0.9% of LiveWire Group shares are held by institutional investors. 20.0% of Tesla shares are held by company insiders. Comparatively, 0.4% of LiveWire Group shares are held by company 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.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Tesla and LiveWire Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tesla | 4 | 17 | 27 | 1 | 2.51 |
| LiveWire Group | 1 | 0 | 0 | 0 | 1.00 |
Tesla currently has a consensus price target of $414.51, suggesting a potential upside of 3.68%. Given Tesla’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tesla is more favorable than LiveWire Group.
Earnings and Valuation
This table compares Tesla and LiveWire Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tesla | $94.83 billion | 16.67 | $3.79 billion | $0.91 | 439.35 |
| LiveWire Group | $25.67 million | 5.36 | -$75.11 million | ($0.36) | -1.86 |
Tesla has higher revenue and earnings than LiveWire Group. LiveWire Group is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Tesla has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, LiveWire Group has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.
Profitability
This table compares Tesla and LiveWire Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tesla | 3.11% | 3.03% | 1.78% |
| LiveWire Group | -217.01% | -252.42% | -55.55% |
Summary
Tesla beats LiveWire Group on 15 of the 15 factors compared between the two stocks.
About Tesla
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
About LiveWire Group
LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.
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