Critical Comparison: Zapp Electric Vehicles Group (NASDAQ:ZAPP) and Fox Factory (NASDAQ:FOXF)

Zapp Electric Vehicles Group (NASDAQ:ZAPP) and Fox Factory (NASDAQ:FOXF) are both small-cap consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares Zapp Electric Vehicles Group and Fox Factory’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zapp Electric Vehicles Group	N/A	N/A	-$222.10 million	N/A	N/A
Fox Factory	$1.46 billion	1.24	$120.85 million	$1.79	24.45

Fox Factory has higher revenue and earnings than Zapp Electric Vehicles Group.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zapp Electric Vehicles Group and Fox Factory, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapp Electric Vehicles Group	0	0	0	0	N/A
Fox Factory	0	5	1	0	2.17

Fox Factory has a consensus price target of $46.83, suggesting a potential upside of 7.00%. Given Fox Factory’s higher possible upside, analysts clearly believe Fox Factory is more favorable than Zapp Electric Vehicles Group.

Profitability

This table compares Zapp Electric Vehicles Group and Fox Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zapp Electric Vehicles Group	N/A	N/A	N/A
Fox Factory	5.41%	10.56%	6.45%

Volatility and Risk

Zapp Electric Vehicles Group has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Summary

Fox Factory beats Zapp Electric Vehicles Group on 8 of the 8 factors compared between the two stocks.

About Zapp Electric Vehicles Group

Zapp Electric Vehicles Limited operates an electric motorcycle company. Its i300 is the first in a suite of electric two-wheelers that the company plans to bring to market. It offers a direct-to-customer experience known as DSDTC (drop-ship-direct-to-customer). The company sells its product the i300, to customers online and delivered to the home, as well as provides at-home inspection, service, and support throughout the vehicle ownership lifecycle. The company was incorporated in 2017 and is based in Bangkok, Thailand, with additional office in Paris, France.

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.