Reviewing Aeva Technologies (NASDAQ:AEVA) and Workhorse Group (NASDAQ:WKHS)

Aeva Technologies (NASDAQ:AEVA) and Workhorse Group (NASDAQ:WKHS) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Aeva Technologies and Workhorse Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeva Technologies	-804.40%	-603.21%	-101.92%
Workhorse Group	-363.15%	-239.58%	-68.70%

Volatility & Risk

Aeva Technologies has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.

Institutional & Insider Ownership

62.9% of Aeva Technologies shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 27.2% of Aeva Technologies shares are owned by insiders. Comparatively, 1.9% of Workhorse Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aeva Technologies and Workhorse Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeva Technologies	1	1	3	0	2.40
Workhorse Group	1	0	0	0	1.00

Aeva Technologies currently has a consensus price target of $26.50, suggesting a potential upside of 60.80%. Given Aeva Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Aeva Technologies is more favorable than Workhorse Group.

Valuation & Earnings

This table compares Aeva Technologies and Workhorse Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeva Technologies	$18.08 million	57.41	-$145.43 million	($5.07)	-3.25
Workhorse Group	$21.21 million	1.67	-$64.09 million	($84.69)	-0.04

Workhorse Group has higher revenue and earnings than Aeva Technologies. Aeva Technologies is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.

About Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.

About Workhorse Group

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.