Analyzing WeRide (NASDAQ:WRD) & Aptiv (NYSE:APTV)

WeRide (NASDAQ:WRD) and Aptiv (NYSE:APTV) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

94.2% of Aptiv shares are owned by institutional investors. 2.7% of WeRide shares are owned by insiders. Comparatively, 0.1% of Aptiv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares WeRide and Aptiv’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%
Aptiv	1.77%	17.83%	7.08%

Analyst Recommendations

This is a summary of current ratings and recommmendations for WeRide and Aptiv, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	1	7	0	2.67
Aptiv	1	1	22	0	2.88

WeRide currently has a consensus target price of $12.48, suggesting a potential upside of 96.59%. Aptiv has a consensus target price of $82.67, suggesting a potential upside of 29.50%. Given WeRide’s higher possible upside, equities research analysts clearly believe WeRide is more favorable than Aptiv.

Volatility & Risk

WeRide has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares WeRide and Aptiv”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$97.89 million	20.22	-$230.20 million	($0.75)	-8.47
Aptiv	$20.40 billion	0.66	$165.00 million	$1.69	37.78

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

Summary

Aptiv beats WeRide on 10 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 Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.