NIO vs Nikola Which Outperforms?

NIO and Nikola are two major players in the global electric vehicle market, with both companies experiencing rapid growth and attracting significant investor interest. NIO, a Chinese automaker, has established itself as a leader in the EV industry, with a strong brand and growing market share. On the other hand, Nikola, an American company, has faced controversy and scrutiny surrounding its technology and business practices. Investors are closely watching these two companies as they compete for market dominance in the electric vehicle space.

NIO or Nikola?

When comparing NIO 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 NIO 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. NIO 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. NIO 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 NIO P/E ratio at -3.23 and Nikola's P/E ratio at -0.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NIO P/B ratio is 4.14 while Nikola's P/B ratio is 0.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NIO has seen a 5-year revenue growth of 1.19%, while Nikola's is 57.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NIO's ROE at -105.77% and Nikola's ROE at -114.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.36 for NIO and $2.32 for Nikola. Over the past year, NIO's prices ranged from $3.61 to $9.57, with a yearly change of 165.10%. Nikola's prices fluctuated between $2.16 and $34.50, with a yearly change of 1497.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.