Popular Electric Vehicle (EV) companies Mullen Automotive, Inc. (MULN) and General Motors Company (GM) have been evolving substantially in this space.
In 2022, EV sales in the U.S. almost doubled. Moreover, demand for EV goods and services is expected to remain solid in the upcoming years. The EV market is predicted to grow at a CAGR of 24.3% from 2022 to 2030.
In addition, battery electric vehicle sales in the U.S. are expected to surge in 2023. EVs are nature friendly and might witness overwhelming demand shortly, given the sustainability initiatives worldwide. By 2030, 145 million electric vehicles are expected to be on the road.
Therefore, quality stocks MULN and GM are expected to gain significantly.
MULN has gained 64.1% over the past month, while GM has lost 13.1% over the past month. However, MULN has lost 5.6% over the past three months, while GM has lost 3.1%. But which of these stocks is the better pick now? Let's find out.
Latest Developments
On December 14, 2022, MULN entered into a definitive agreement with Loop Global Inc., a full-service EV charging solution provider, to build the next generation of public and private EV charging technology, infrastructure, and network solutions. However, it might take some time for the companies to launch this technology.
On the other hand, on November 17, 2022, GM and Vale Canada Limited, a subsidiary of Vale S.A., signed a term sheet for the long-term supply of battery-grade nickel sulfate from Vale’s proposed plant at Bécancour, Québec, Canada.
Also, on November 16, 2022, GM and Nel Hydrogen US, a subsidiary of Nel ASA, entered into a joint development agreement to help accelerate the industrialization of Nel’s proton exchange membrane (PEM) electrolyzer platform.
These innovative joint ventures are expected to help GM thrive in the coming years.
Moreover, GM reclaimed its U.S. sales crown as the nation’s top automaker in 2022. The company sold 2.27 million vehicles in the U.S. in 2022, up by 2.5% over 2021.
Recent Financial Results
MULN’s total operating expense came in at $18.22 million for the quarter that ended June 30, 2022, up 184.5% year-over-year. Its net loss came in at $59.47 million, up 289.9% year-over-year. Also, its total liabilities and stockholders’ equity came in at $84.27 million for the period ended June 30, 2022, compared to $17.17 million for the period ended September 30, 2021.
GM’s revenue came in at $41.89 billion for the third quarter that ended September 30, 2022, up 56.4% year-over-year. Its adjusted EBIT came in at $4.29 billion, up 46.7% year-over-year. Also, its adjusted EPS came in at $2.25, up 48% year-over-year. Moreover, its net income increased 36.6% year-over-year to $3.31 billion.
Past and Expected Financial Performance
MULN’s revenue is expected to increase 11.3% year-over-year to $146.30 million for the yet-to-be-reported fiscal ending 2022.
On the other hand, GM’s revenue is expected to increase 21.4% year-over-year to $154.24 billion for the yet-to-be-reported fiscal ending 2022. Its revenue is expected to increase 3.7% year-over-year to $159.94 billion in 2023. Moreover, its EPS is expected to increase by 15.7% per annum for the next five years.
Profitability
MULN’s ROTC of negative 618.14% is lower than GM’s 4.23%. Also, its cash from operations of negative $47.71 million is lower than GM’s $17.23 billion.
Thus, GM is more profitable.
Valuation
In terms of trailing-12-month Price to Book, MULN’s 8.37x is substantially higher than GM’s 0.73x.
Thus, GM is more affordable.
POWR Ratings
GM has an overall rating of B, equating to Buy in our proprietary POWR Ratings system. On the other hand, MULN has an overall rating of F, which translates to a Strong Sell. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
GM has a B grade for Value. Its trailing-12-month Price/Book of 0.74x is 62.6% lower than the industry average of 1.99x. Conversely, MULN has an F grade for Value. Its trailing-12-month Price/Book of 8.73x is 339.5% higher than the industry average.
In addition, GM has a C grade for Stability, in sync with its 24-month beta of 1.40. In contrast, MULN has an F grade for Stability, in sync with its 24-month beta of 2.84.
Of the 61-stock Auto & Vehicle Manufacturers industry, GM is ranked #18, and MULN is ranked #57.
Beyond what we’ve stated above, we have also rated the stocks for Growth, Momentum, Sentiment, and Quality. Click here to view GM ratings. Get all MULN ratings here.
The Winner
EV industry tailwinds are expected to boost quality EV stocks GM and MULN. However, GM is more profitable and affordable than MULN and might be a better buy now.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Auto & Vehicle Manufacturers industry here.
MULN shares fell $0.34 (-100.00%) in premarket trading Thursday. Year-to-date, MULN has gained 22.38%, versus a 0.12% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
MULN vs. GM: Which Is the Better EV Buy? StockNews.com
