Reviewing Fox Factory (NASDAQ:FOXF) & Volcon (NASDAQ:EMPD)

Volcon (NASDAQ:EMPD) and Fox Factory (NASDAQ:FOXF) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Profitability

This table compares Volcon and Fox Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-1,758.79%	-27.36%	-23.81%
Fox Factory	-37.11%	5.06%	2.36%

Volatility & Risk

Volcon has a beta of -0.59, meaning that its stock price is 159% less volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares Volcon and Fox Factory”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volcon	$4.04 million	27.96	-$45.51 million	($15.42)	-0.26
Fox Factory	$1.47 billion	0.48	-$544.58 million	($13.04)	-1.29

Volcon has higher earnings, but lower revenue than Fox Factory. Fox Factory is trading at a lower price-to-earnings ratio than Volcon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Volcon and Fox Factory, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	1	0	0	0	1.00
Fox Factory	1	4	2	1	2.38

Fox Factory has a consensus price target of $28.60, suggesting a potential upside of 69.63%. Given Fox Factory’s stronger consensus rating and higher possible upside, analysts clearly believe Fox Factory is more favorable than Volcon.

Summary

Fox Factory beats Volcon on 10 of the 13 factors compared between the two stocks.

About Volcon

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.