WABCO (WBC) versus Workhorse Group (NASDAQ:WKHS) Critical Contrast

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 5 9 0 2.64
Workhorse Group 0 0 3 0 3.00

WABCO presently has a consensus price target of $149.36, suggesting a potential upside of 26.96%. Workhorse Group has a consensus price target of $4.67, suggesting a potential upside of 309.36%. Given Workhorse Group’s stronger consensus rating and higher probable upside, analysts clearly believe Workhorse Group is more favorable than WABCO.

Risk & Volatility

WABCO has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of -0.48, suggesting that its share price is 148% less volatile than the S&P 500.

Institutional and Insider Ownership

8.0% of Workhorse Group shares are owned by institutional investors. 0.5% of WABCO shares are owned by insiders. Comparatively, 9.4% of Workhorse Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares WABCO and Workhorse Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WABCO $3.30 billion 1.88 $406.10 million $6.86 17.15
Workhorse Group $10.85 million 5.91 -$41.21 million ($1.09) -1.05

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

Profitability

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

Net Margins Return on Equity Return on Assets
WABCO 11.77% 34.37% 10.09%
Workhorse Group -403.52% -1,564.64% -234.42%

Summary

WABCO beats Workhorse Group on 9 of the 14 factors compared between the two stocks.

WABCO Company Profile

WABCO Holdings Inc., together with its subsidiaries, supplies electronic, mechanical, electro-mechanical, and aerodynamic products worldwide. The company engineers, develops, manufactures, and sells braking, stability, suspension, transmission automation, and air management systems primarily for commercial vehicles. The company's products include pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, and air disc brakes; and various conventional mechanical products, such as actuators, air compressors, and air control valves for medium and heavy-duty trucks, buses, and trailers. It also offers pneumatic and hydraulic braking and control systems for off-highway vehicles; conventional braking systems; electronic and conventional air suspension systems; steering technologies; and foundation brakes, vehicle electronic stability control and roll stability support products, and advanced driver assistance systems. In addition, the company supplies electronic suspension controls and vacuum pumps to the passenger car and SUV markets, as well as provides remanufacturing services. Further, it offers replacement parts, fleet management solutions, diagnostic tools, training, and other expert services for commercial vehicle aftermarket distributors and service partners, and fleet operators. The company sells its products primarily to truck and bus original equipment manufacturers (OEMs), Trailer OEMs, and car manufacturers; commercial vehicle aftermarket distributors for replacement parts and services and commercial vehicle fleet operators for management solutions and services; and manufacturers of heavy duty off-highway vehicles in agriculture, construction, mining, and other industries. WABCO Holdings Inc. was founded in 1869 and is headquartered in Brussels, Belgium.

Workhorse Group Company Profile

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring system that enables fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones and truck systems. 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 Loveland, Ohio.

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