Lucid vs Nikola Which Is a Smarter Choice?

Investors looking to capitalize on the growing electric vehicle market may be considering investing in Lucid Motors and Nikola Corporation stocks. Lucid Motors, known for its luxury electric vehicles, has been gaining attention for its innovative technology and stylish designs. On the other hand, Nikola Corporation, specializing in hydrogen fuel cell trucks, has faced its share of controversy and skepticism. Both companies are competing in a rapidly evolving industry, making them intriguing options for those looking to diversify their portfolios in the electric vehicle sector.

Lucid or Nikola?

When comparing Lucid and Nikola, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Lucid and Nikola.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Lucid has a dividend yield of -%, while Nikola has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lucid reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nikola reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Lucid P/E ratio at -2.02 and Nikola's P/E ratio at -0.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lucid P/B ratio is 2.23 while Nikola's P/B ratio is 0.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lucid has seen a 5-year revenue growth of 0.55%, while Nikola's is 57.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lucid's ROE at -72.28% and Nikola's ROE at -114.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.45 for Lucid and $1.42 for Nikola. Over the past year, Lucid's prices ranged from $1.93 to $5.26, with a yearly change of 172.54%. Nikola's prices fluctuated between $1.32 and $34.50, with a yearly change of 2513.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.