Nikola vs Workhorse Which Is Superior?

Nikola Corporation and Workhorse Group Inc. are two prominent players in the electric vehicle industry, both striving to revolutionize transportation with their innovative technology. While Nikola focuses on developing hydrogen fuel cell and battery-electric trucks, Workhorse specializes in electric delivery vans and trucks. Investors are closely watching these two stocks, as they both have the potential to disrupt the traditional automotive market and generate significant returns. Understanding the strengths and weaknesses of each company is crucial for making informed investment decisions in this rapidly evolving industry.

Nikola or Workhorse?

When comparing Nikola and Workhorse, 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 Nikola and Workhorse.

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. Nikola has a dividend yield of -%, while Workhorse has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nikola reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Workhorse 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 Nikola P/E ratio at -0.26 and Workhorse's P/E ratio at -0.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nikola P/B ratio is 0.44 while Workhorse's P/B ratio is 0.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nikola has seen a 5-year revenue growth of 57.76%, while Workhorse's is 3.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nikola's ROE at -115.01% and Workhorse's ROE at -163.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.96 for Nikola and $0.80 for Workhorse. Over the past year, Nikola's prices ranged from $2.91 to $34.80, with a yearly change of 1095.88%. Workhorse's prices fluctuated between $0.57 and $8.78, with a yearly change of 1432.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.