WeRide (NASDAQ:WRD – Get Free Report) and Lear (NYSE:LEA – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Profitability
This table compares WeRide and Lear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WeRide | -228.47% | -24.18% | -21.45% |
| Lear | 2.25% | 13.69% | 4.71% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for WeRide and Lear, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
| Lear | 0 | 9 | 5 | 1 | 2.47 |
Insider and Institutional Ownership
97.0% of Lear shares are held by institutional investors. 2.7% of WeRide shares are held by company insiders. Comparatively, 1.0% of Lear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares WeRide and Lear”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WeRide | $97.89 million | 18.88 | -$230.20 million | ($0.75) | -7.93 |
| Lear | $23.26 billion | 0.31 | $436.80 million | $10.00 | 14.60 |
Lear has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
WeRide has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Summary
Lear beats WeRide on 9 of the 15 factors compared between the two stocks.
About WeRide
WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.
About Lear
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
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