Head-To-Head Comparison: Ideanomics (NASDAQ:IDEX) vs. NIO (NYSE:NIO)

Ideanomics (NASDAQ:IDEX) and NIO (NYSE:NIO) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Ideanomics and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ideanomics	N/A	-424.07%	-75.30%
NIO	-32.47%	-104.61%	-19.41%

Institutional and Insider Ownership

4.4% of Ideanomics shares are owned by institutional investors. Comparatively, 48.5% of NIO shares are owned by institutional investors. 0.6% of Ideanomics shares are owned by insiders. Comparatively, 1.0% of NIO shares are owned by 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.

Valuation and Earnings

This table compares Ideanomics and NIO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ideanomics	$15.46 million	0.26	-$223.83 million	($61.35)	0.00
NIO	$63.52 billion	0.15	-$2.94 billion	($1.69)	-3.28

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

Analyst Recommendations

This is a summary of current ratings and target prices for Ideanomics and NIO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ideanomics	0	0	0	0	N/A
NIO	1	8	2	0	2.09

NIO has a consensus target price of $5.93, suggesting a potential upside of 6.91%. Given NIO’s higher probable upside, analysts clearly believe NIO is more favorable than Ideanomics.

Volatility and Risk

Ideanomics has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, NIO has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.

Summary

NIO beats Ideanomics on 9 of the 13 factors compared between the two stocks.

About Ideanomics

Ideanomics, Inc., through its subsidiaries, develops zero emission mobility solutions for the off-highway and on-highway commercial vehicle markets in Asia, Europe, and the United States. The company's Ideanomics Mobility business unit focuses on the commercial adoption of electric vehicles (EV) by commercial fleet operators. This business unit provides solutions for the procurement, financing, charging, and energy management needs for the fleet operators of commercial EVs; and zero emission mobility solutions, such as the provision of commercial electric vans, trucks, buses, electric tractors, and two-wheeled transportation, supporting by the provision of energy services and infrastructure for the EV market comprising charging systems, energy storage, and energy generation, including hydrogen and solar, and associated data and management applications. It also offers high-power inductive charging solutions for medium and heavy-duty EVs; manufactures and distributes electric powered tractors; manufactures and sells electric and hybrid electric propulsion kits, as well as electric motorcycles; sells EV bikes, scooters, and batteries under the Treeletrik brand; and designs, manufactures, and markets electric commercial vehicles, as well as performs retrofits to convert diesel powered specialty vehicles. The company's Ideanomics Capital business unit provides financing services, which focuses on the enhancement of efficiency, transparency, and profitability for the financial services industry. This business unit offers solutions for the real estate transactions, including title and escrow, residential and commercial title insurance, and closing and settlement services, as well as specialized offerings for the mortgage industry; and acts as the Financial Industry Regulatory Authority-registered broker dealer that operates a platform focused on private equity and debt. Ideanomics, Inc. was incorporated in 2004 and is headquartered in New York, New York.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.