Nanalyze

Rivian vs Lucid. These two popular electric vehicle stocks draw plenty of attention from investors, but we're avoiding both like the plague. Why? Because neither company can sell vehicles for more than they cost to produce. Rivian's gross margin is trending in the right direction while Lucid's gross margin isn't. That means looking at cash and operating cash flow to calculate runway helps us understand how long they have before needing to raise capital again. Both companies have existing debt load in the billions, so perhaps they'll look to sell more shares, though both Lucid and Rivian have outstanding share numbers that have been increasing every quarter. When it comes to valuation, LCID stock is completely overvalued based on our simple valuation ratio. RIVN stock has a lower valuation than Tesla, but that's to be expected as the latter is one of the biggest success stories in the automotive world. Long story short, we're avoiding both Rivian and Lucid as these high-risk SPACs don't offer sufficient risk-vs-reward for getting electric vehicle exposure.

MCD stock is hitting new highs as McDonald's investors eyeball the expanding debt load. Is MSC stock a good investment? We believe it's one of the best dividend growth companies out there, and that's not because they sell lots of fast food - which they do. We find MCD stock to be an attractive investment because they have a diversified portfolio of restaurants occupying some of the best real estate in the world. More than 60% of McDonald's revenues come from rent paid to them by their franchised restaurant operators. The big question is if $MCD can keep growing their dividend to maintain that 47-year track record. In three more years, they'll be a dividend king. We think MCD is a good buy at any time for investors who use dollar cost averaging to accumulate MCD shares slowly over time.