ECARX (NASDAQ:ECX – Get Free Report) and Embark Technology (NASDAQ:EMBK – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Volatility & Risk
ECARX has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Embark Technology has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Earnings & Valuation
This table compares ECARX and Embark Technology’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ECARX | $515.70 million | 0.25 | -$223.18 million | N/A | N/A |
| Embark Technology | N/A | N/A | -$103.16 million | ($7.73) | -0.37 |
Insider and Institutional Ownership
16.2% of ECARX shares are owned by institutional investors. Comparatively, 78.0% of Embark Technology shares are owned by institutional investors. 20.0% of ECARX shares are owned by company insiders. Comparatively, 31.6% of Embark Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares ECARX and Embark Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ECARX | N/A | N/A | -31.42% |
| Embark Technology | N/A | -91.32% | -78.87% |
Analyst Ratings
This is a breakdown of current ratings and target prices for ECARX and Embark Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ECARX | 0 | 0 | 1 | 0 | 3.00 |
| Embark Technology | 0 | 2 | 0 | 0 | 2.00 |
ECARX currently has a consensus price target of $10.00, suggesting a potential upside of 185.71%. Given ECARX’s stronger consensus rating and higher possible upside, equities analysts clearly believe ECARX is more favorable than Embark Technology.
Summary
ECARX beats Embark Technology on 6 of the 10 factors compared between the two stocks.
About ECARX
ECARX Holdings Inc. develops a full stack automotive computing platform to reshape the mobility market worldwide. Its principal products include infotainment head units, digital cockpits, and vehicle chip-set solutions, as well as core operating system and integrated software stack. The company was founded in 2017 and is based in London, the United Kingdom.
About Embark Technology
Embark Technology, Inc. develops autonomous driving software solutions for the truck freight industry in the United States. Its solutions include Embark Driver, an automated driving system software; Embark Universal Interface, an interoperable self-driving stack that works across truck OEM platforms; and Embark Guardian, a cloud-based autonomous fleet management solution that gives carriers control over dispatching and management of their autonomous fleet operations. Embark Technology, Inc. was incorporated in 2016 and is headquartered in San Francisco, California.
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