VinFast Auto (NASDAQ:VFS) versus Stellantis (NYSE:STLA) Critical Review

VinFast Auto (NASDAQ:VFS) and Stellantis (NYSE:STLA) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares VinFast Auto and Stellantis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VinFast Auto	$1.20 billion	N/A	-$2.40 billion	($1.14)	-3.46
Stellantis	$205.13 billion	0.19	$20.13 billion	N/A	N/A

Stellantis has higher revenue and earnings than VinFast Auto.

Volatility and Risk

VinFast Auto has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Stellantis has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for VinFast Auto and Stellantis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VinFast Auto	0	0	4	0	3.00
Stellantis	1	8	4	1	2.36

VinFast Auto presently has a consensus target price of $9.00, indicating a potential upside of 127.85%. Stellantis has a consensus target price of $27.34, indicating a potential upside of 116.77%. Given VinFast Auto’s stronger consensus rating and higher possible upside, equities analysts clearly believe VinFast Auto is more favorable than Stellantis.

Insider & Institutional Ownership

59.5% of Stellantis shares are held by institutional investors. 16.2% of VinFast Auto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares VinFast Auto and Stellantis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VinFast Auto	-187.34%	N/A	-46.50%
Stellantis	N/A	N/A	N/A

Summary

Stellantis beats VinFast Auto on 7 of the 10 factors compared between the two stocks.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.