Workhorse Group (NASDAQ:WKHS – Get Free Report) and Strattec Security (NASDAQ:STRT – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Risk & Volatility
Workhorse Group has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500. Comparatively, Strattec Security has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Workhorse Group and Strattec Security, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
| Strattec Security | 0 | 1 | 1 | 0 | 2.50 |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workhorse Group | $10.62 million | 1.13 | -$101.79 million | ($85.96) | -0.06 |
| Strattec Security | $565.07 million | 0.57 | $18.68 million | $5.72 | 13.50 |
Strattec Security has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than Strattec Security, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Workhorse Group and Strattec Security’s 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% |
| Strattec Security | 4.06% | 10.94% | 6.93% |
Insider & Institutional Ownership
16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 68.9% of Strattec Security shares are held by institutional investors. 1.9% of Workhorse Group shares are held by company insiders. Comparatively, 3.9% of Strattec Security shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Strattec Security beats Workhorse Group on 11 of the 13 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 Strattec Security
Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.
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