Motorcar Parts of America (NASDAQ:MPAA – Get Free Report) and WeRide (NASDAQ:WRD – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Motorcar Parts of America and WeRide”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorcar Parts of America | $789.81 million | 0.26 | $12.39 million | ($0.31) | -34.91 |
| WeRide | $97.89 million | 18.27 | -$230.20 million | ($0.75) | -7.67 |
Insider and Institutional Ownership
83.5% of Motorcar Parts of America shares are owned by institutional investors. 8.4% of Motorcar Parts of America shares are owned by insiders. Comparatively, 2.7% of WeRide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Motorcar Parts of America and WeRide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Motorcar Parts of America | -0.53% | -0.57% | -0.15% |
| WeRide | -199.09% | -24.12% | -20.92% |
Volatility and Risk
Motorcar Parts of America has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Motorcar Parts of America and WeRide, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorcar Parts of America | 1 | 1 | 2 | 0 | 2.25 |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
Motorcar Parts of America currently has a consensus price target of $18.00, suggesting a potential upside of 66.33%. WeRide has a consensus price target of $12.27, suggesting a potential upside of 113.15%. Given WeRide’s stronger consensus rating and higher probable upside, analysts plainly believe WeRide is more favorable than Motorcar Parts of America.
Summary
Motorcar Parts of America beats WeRide on 8 of the 14 factors compared between the two stocks.
About Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.
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.
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