WeRide (NASDAQ:WRD – Get Free Report) and AB Volvo (OTCMKTS:VLVLY – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Insider & Institutional Ownership
0.0% of AB Volvo shares are held by institutional investors. 2.7% of WeRide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for WeRide and AB Volvo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
| AB Volvo | 1 | 6 | 0 | 2 | 2.33 |
Profitability
This table compares WeRide and AB Volvo’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% |
| AB Volvo | 8.32% | 23.35% | 5.99% |
Earnings and Valuation
This table compares WeRide and AB Volvo”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WeRide | $97.89 million | 23.05 | -$230.20 million | ($0.75) | -9.52 |
| AB Volvo | $48.98 billion | 1.39 | $3.52 billion | $2.03 | 16.54 |
AB Volvo has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
WeRide has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, AB Volvo has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Summary
AB Volvo beats WeRide on 9 of the 15 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 AB Volvo
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
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