Lucid vs Porsche Which Should You Buy?

Lucid Motors and Porsche are two prominent players in the electric vehicle market, each offering unique strengths and opportunities for investors. While Lucid is a relatively new player in the industry, it has gained attention for its innovative technology and impressive range of luxury electric vehicles. On the other hand, Porsche, a well-established brand in the automotive world, has also made significant strides in the EV market with its highly coveted Taycan model. Both companies present intriguing investment prospects for those looking to capitalize on the growing demand for electric vehicles.

Lucid or Porsche?

When comparing Lucid and Porsche, 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 Porsche.

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 Porsche has a dividend yield of 7.24%. 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, Porsche reports a 5-year dividend growth of 0.00% year and a payout ratio of 152.73%.

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 -1830.71 and Porsche's P/E ratio at 14.57. 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 2026.33 while Porsche's P/B ratio is 2.60.

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 Porsche's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lucid's ROE at -72.28% and Porsche's ROE at 18.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.23 for Lucid and €63.82 for Porsche. Over the past year, Lucid's prices ranged from $2.02 to $5.31, with a yearly change of 162.87%. Porsche's prices fluctuated between €61.10 and €96.18, with a yearly change of 57.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.