Arrival (NASDAQ:ARVL – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Volatility and Risk
Arrival has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.
Earnings and Valuation
This table compares Arrival and REE Automotive’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arrival | N/A | N/A | -$1.31 billion | N/A | N/A |
| REE Automotive | $10,000.00 | 4,961.40 | -$107.42 million | ($0.39) | -0.38 |
Profitability
This table compares Arrival and REE Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arrival | N/A | N/A | N/A |
| REE Automotive | N/A | -70.85% | -57.15% |
Institutional and Insider Ownership
18.8% of REE Automotive shares are owned by institutional investors. 0.5% of Arrival shares are owned by insiders. Comparatively, 6.0% of REE Automotive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Arrival and REE Automotive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arrival | 0 | 1 | 0 | 0 | 2.00 |
| REE Automotive | 0 | 2 | 2 | 0 | 2.50 |
Arrival currently has a consensus target price of $275.00, indicating a potential upside of 18,233.33%. REE Automotive has a consensus target price of $3.63, indicating a potential upside of 2,316.67%. Given Arrival’s higher probable upside, equities research analysts clearly believe Arrival is more favorable than REE Automotive.
Summary
REE Automotive beats Arrival on 6 of the 10 factors compared between the two stocks.
About Arrival
Arrival engages in the research and development, and design of commercial electric vehicles (EVs), EVs components, robotic manufacturing processes for EVs, and associated software in the United Kingdom, the United States, Russia, and internationally. Its products portfolio includes commercial EV vans, buses, and cars. The company was formerly known as Arrival Group S.A. and changed its name to Arrival. The company was founded in 2015 and is based in Howald, Luxembourg. Arrival is a subsidiary of Kinetik S.à r.l.
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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