Contrasting Volkswagen (OTCMKTS:VWAGY) & ECD Automotive Design (NASDAQ:ECDA)

Volkswagen (OTCMKTS:VWAGY) and ECD Automotive Design (NASDAQ:ECDA) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for Volkswagen and ECD Automotive Design, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volkswagen	1	3	0	1	2.20
ECD Automotive Design	0	0	0	0	0.00

Risk and Volatility

Volkswagen has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.59, meaning that its stock price is 259% less volatile than the S&P 500.

Valuation and Earnings

This table compares Volkswagen and ECD Automotive Design”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volkswagen	$348.78 billion	0.17	$17.97 billion	$2.31	5.23
ECD Automotive Design	$25.73 million	0.93	-$1.60 million	N/A	N/A

Volkswagen has higher revenue and earnings than ECD Automotive Design.

Profitability

This table compares Volkswagen and ECD Automotive Design’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volkswagen	3.77%	6.37%	1.98%
ECD Automotive Design	N/A	N/A	N/A

Institutional and Insider Ownership

94.8% of ECD Automotive Design shares are held by institutional investors. 77.3% of ECD Automotive Design shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Volkswagen beats ECD Automotive Design on 8 of the 11 factors compared between the two stocks.

About Volkswagen

Volkswagen AG manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles, and related parts; and offers motorcycles. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services. It sells its products under the Volkswagen Passenger Cars, koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brands. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.