Polaris (NYSE:PII – Get Rating) and REE Automotive (NASDAQ:REE – Get Rating) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Earnings & Valuation
This table compares Polaris and REE Automotive’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Polaris | $8.59 billion | 0.76 | $447.10 million | $8.31 | 13.88 |
| REE Automotive | $10,000.00 | 12,444.24 | -$107.42 million | ($0.39) | -0.97 |
Polaris has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Polaris, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Polaris | 5.46% | 60.97% | 12.72% |
| REE Automotive | N/A | -62.96% | -52.30% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Polaris and REE Automotive, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Polaris | 0 | 10 | 2 | 1 | 2.31 |
| REE Automotive | 0 | 2 | 3 | 0 | 2.60 |
Polaris presently has a consensus target price of $114.27, indicating a potential downside of 0.94%. REE Automotive has a consensus target price of $3.63, indicating a potential upside of 853.95%. Given REE Automotive’s stronger consensus rating and higher possible upside, analysts plainly believe REE Automotive is more favorable than Polaris.
Institutional & Insider Ownership
88.3% of Polaris shares are held by institutional investors. Comparatively, 19.5% of REE Automotive shares are held by institutional investors. 2.8% of Polaris shares are held by company insiders. Comparatively, 6.0% of REE Automotive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Polaris has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.
Summary
Polaris beats REE Automotive on 9 of the 15 factors compared between the two stocks.
About Polaris
Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles worldwide. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; moto-roadsters, quadricycles, and boats; and aftermarket parts and apparel. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. It provides its products through dealers and distributors, and online; and retail and e-commerce sites. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in Israel, the United Kingdom, the United States, Germany, and internationally. The company offers REEcorner integrates vehicle components comprising as steering, braking, suspension, powertrain, and control into single compact module between the chassis and the wheel, which is controlled by its electronic unit functions, which includes drive-by-wire, steer-by-wire, break-by-wire, DaaS, smart corners, and design for serviceability; and REEplatform, a modular electric vehicle platform. It provides P7 EV Modular Platform designed for commercial delivery vehicles and walk-in vans; and Proxima Powered by REE, a class 5 fully drive-by-wire walk-in step van, which comprises EAVX and Morgan Olson body paired with REE's fully-flat modular P7 chassis and x-by-wire technology, which includes improved aerodynamics, enhanced driver ergonomics, driver visibility and safety, and enhanced maneuverability. Further, the company provides P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with REE's all-wheel drive and all-wheel steer for vehicle control, handling, and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, MaaS providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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