Financial Review: Workhorse Group (NASDAQ:WKHS) & Lotus Technology (NASDAQ:LOT)

Workhorse Group (NASDAQ:WKHSGet Free Report) and Lotus Technology (NASDAQ:LOTGet Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Volatility and Risk

Workhorse Group has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500. Comparatively, Lotus Technology has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workhorse Group $13.10 million 3.84 -$123.92 million ($0.59) -0.27
Lotus Technology $679.01 million 0.30 -$742.00 million ($0.48) -14.77

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

Profitability

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

Net Margins Return on Equity Return on Assets
Workhorse Group -946.32% -121.46% -76.70%
Lotus Technology N/A -0.62% -39.40%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Workhorse Group and Lotus Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workhorse Group 1 2 1 0 2.00
Lotus Technology 0 1 0 0 2.00

Workhorse Group currently has a consensus target price of $1.50, suggesting a potential upside of 837.50%. Lotus Technology has a consensus target price of $7.00, suggesting a potential downside of 1.27%. Given Workhorse Group’s higher possible upside, analysts clearly believe Workhorse Group is more favorable than Lotus Technology.

Institutional & Insider Ownership

16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 1.9% of Workhorse Group shares are held by insiders. Comparatively, 0.2% of Lotus Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Workhorse Group beats Lotus Technology on 7 of the 13 factors compared between the two stocks.

About Workhorse Group

(Get Free Report)

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. 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 Sharonville, Ohio.

About Lotus Technology

(Get Free Report)

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

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