Critical Analysis: Volcon (EMPD) versus The Competition

Volcon (NASDAQ:EMPD) is one of 26 publicly-traded companies in the “AUTO – DOMESTIC” industry, but how does it contrast to its competitors? We will compare Volcon to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Volatility and Risk

Volcon has a beta of -0.62, indicating that its share price is 162% less volatile than the S&P 500. Comparatively, Volcon’s competitors have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Insider and Institutional Ownership

50.6% of shares of all “AUTO – DOMESTIC” companies are owned by institutional investors. 0.1% of Volcon shares are owned by insiders. Comparatively, 12.8% of shares of all “AUTO – DOMESTIC” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Volcon and its competitors’ 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%
Volcon Competitors	-219.87%	-29.16%	-14.78%

Analyst Recommendations

This is a breakdown of current ratings for Volcon and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	1	0	0	1	2.50
Volcon Competitors	866	2313	2612	133	2.34

As a group, “AUTO – DOMESTIC” companies have a potential upside of 6.49%. Given Volcon’s competitors higher possible upside, analysts clearly believe Volcon has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Volcon and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Volcon	$4.04 million	-$45.51 million	-0.30
Volcon Competitors	$23.89 billion	$510.60 million	13.25

Volcon’s competitors have higher revenue and earnings than Volcon. Volcon is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Volcon competitors beat Volcon on 10 of the 13 factors compared.

Volcon Company Profile

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.