Landon Capital

Kandi Technologies Group, Inc. (Nasdaq:KNDI) operates in end-to-end production of electric vehicle (EV) products and parts, and off-road vehicles in the People’s Republic of China and internationally. It offers ATVs, UTVs, go-carts, and scooters and parts such as battery packs, and controllers, among others. They are not a large manufacturer, but they have a USD 27.6 million purchase order slated to be placed later this quarter and the stock is up over 25% over the past 3 months.

Comps: China Automotive Systems, Inc. (Nasdaq:CAAS), Stoneridge, Inc. (NYSE:SRI)

If we compare Kandi Technologies group to these two companies, we see a lower price-to-earnings ratio and a significantly larger quarterly revenue growth year over year. In fact, Kandi Technologies increased its revenues in Q3 of ‘21 by over 100% compared to the same quarter a year prior. Moreover, they had better earnings per share, debt in relation to equity, and return on equity than Stoneridge. However, while they did show substantial revenue growth and competitive earnings-based metrics, they did not have the profitability of these other two firms.