Financial Survey: Gentex (NASDAQ:GNTX) vs. WeRide (NASDAQ:WRD)

WeRide (NASDAQ:WRD) and Gentex (NASDAQ:GNTX) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares WeRide and Gentex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$511.42 million	4.78	-$350.09 million	($0.84)	-8.99
Gentex	$2.53 billion	2.11	$384.84 million	$1.74	14.03

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

Analyst Ratings

This is a summary of recent recommendations and price targets for WeRide and Gentex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	4	0	2.60
Gentex	0	6	2	0	2.25

WeRide currently has a consensus target price of $13.13, suggesting a potential upside of 73.84%. Gentex has a consensus target price of $26.71, suggesting a potential upside of 9.40%. Given WeRide’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WeRide is more favorable than Gentex.

Risk and Volatility

WeRide has a beta of 4.33, meaning that its share price is 333% more volatile than the S&P 500. Comparatively, Gentex has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares WeRide and Gentex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	-329.54%	-24.31%	-22.06%
Gentex	15.19%	16.05%	13.85%

Institutional & Insider Ownership

86.8% of Gentex shares are held by institutional investors. 0.5% of Gentex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Gentex beats WeRide on 9 of the 14 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 Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.