Contrasting WeRide (NASDAQ:WRD) and Iochpe-Maxion (OTCMKTS:IOCJY)

WeRide (NASDAQ:WRD) and Iochpe-Maxion (OTCMKTS:IOCJY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares WeRide and Iochpe-Maxion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$97.89 million	20.44	-$230.20 million	($0.75)	-8.56
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	17.64

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

Volatility and Risk

WeRide has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Iochpe-Maxion has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for WeRide and Iochpe-Maxion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	1	7	0	2.67
Iochpe-Maxion	0	1	0	0	2.00

WeRide currently has a consensus price target of $12.48, suggesting a potential upside of 94.54%. Given WeRide’s stronger consensus rating and higher possible upside, equities analysts clearly believe WeRide is more favorable than Iochpe-Maxion.

Profitability

This table compares WeRide and Iochpe-Maxion’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%
Iochpe-Maxion	0.58%	1.89%	0.62%

Summary

Iochpe-Maxion beats WeRide on 7 of the 12 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 Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.