Analyzing Mercedes-Benz Group (OTCMKTS:MBGYY) and ECD Automotive Design (NASDAQ:ECDA)

Mercedes-Benz Group (OTCMKTS:MBGYY) and ECD Automotive Design (NASDAQ:ECDA) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Mercedes-Benz Group and ECD Automotive Design’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	6.99%	10.90%	3.84%
ECD Automotive Design	N/A	N/A	N/A

Risk & Volatility

Mercedes-Benz Group has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.52, indicating that its stock price is 252% less volatile than the S&P 500.

Institutional & Insider Ownership

94.8% of ECD Automotive Design shares are owned by institutional investors. 77.3% of ECD Automotive Design shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Mercedes-Benz Group and ECD Automotive Design”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.38	$15.43 billion	C$2.76	5.59
ECD Automotive Design	$25.73 million	1.16	-$1.60 million	N/A	N/A

Mercedes-Benz Group has higher revenue and earnings than ECD Automotive Design.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mercedes-Benz Group and ECD Automotive Design, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	1	4	0	0	1.80
ECD Automotive Design	0	0	0	0	0.00

Summary

Mercedes-Benz Group beats ECD Automotive Design on 7 of the 10 factors compared between the two stocks.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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.