Workhorse Group (NASDAQ:WKHS – Get Free Report) and China Automotive Systems (NASDAQ:CAAS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Workhorse Group and China Automotive Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Workhorse Group | -606.64% | -232.69% | -71.18% |
| China Automotive Systems | 4.62% | 8.38% | 3.96% |
Valuation and Earnings
This table compares Workhorse Group and China Automotive Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workhorse Group | $6.62 million | 1.58 | -$101.79 million | ($85.96) | -0.06 |
| China Automotive Systems | $650.93 million | 0.21 | $29.98 million | $1.11 | 4.09 |
China Automotive Systems has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than China Automotive Systems, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Workhorse Group has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Insider & Institutional Ownership
16.0% of Workhorse Group shares are owned by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are owned by institutional investors. 1.9% of Workhorse Group shares are owned by insiders. Comparatively, 64.8% of China Automotive Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Workhorse Group and China Automotive Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
Summary
China Automotive Systems beats Workhorse Group on 9 of the 12 factors compared between the two stocks.
About Workhorse Group
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 China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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