Adient (NYSE:ADNT – Get Free Report) and Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Profitability
This table compares Adient and Faraday Future Intelligent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adient | -1.53% | 8.25% | 2.02% |
| Faraday Future Intelligent Electric | -54,380.62% | -187.07% | -52.34% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Adient and Faraday Future Intelligent Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adient | 3 | 6 | 2 | 0 | 1.91 |
| Faraday Future Intelligent Electric | 1 | 1 | 0 | 0 | 1.50 |
Risk and Volatility
Adient has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric has a beta of 4.53, meaning that its stock price is 353% more volatile than the S&P 500.
Institutional and Insider Ownership
92.4% of Adient shares are owned by institutional investors. Comparatively, 71.7% of Faraday Future Intelligent Electric shares are owned by institutional investors. 0.7% of Adient shares are owned by company insiders. Comparatively, 0.4% of Faraday Future Intelligent Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Adient and Faraday Future Intelligent Electric”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adient | $14.69 billion | 0.13 | $18.00 million | ($2.65) | -8.90 |
| Faraday Future Intelligent Electric | $540,000.00 | 421.46 | -$355.85 million | ($3.47) | -0.45 |
Adient has higher revenue and earnings than Faraday Future Intelligent Electric. Adient is trading at a lower price-to-earnings ratio than Faraday Future Intelligent Electric, indicating that it is currently the more affordable of the two stocks.
Summary
Adient beats Faraday Future Intelligent Electric on 11 of the 14 factors compared between the two stocks.
About Adient
Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.
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.
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