Contrasting WeRide (NASDAQ:WRD) and REE Automotive (NASDAQ:REE)

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

Earnings and Valuation

This table compares WeRide and REE Automotive”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	21.47	-$230.20 million	($0.75)	-8.87
REE Automotive	$1.30 million	6.87	-$55.81 million	($5.28)	-0.08

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

Profitability

This table compares WeRide and REE Automotive’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%
REE Automotive	N/A	N/A	N/A

Volatility and Risk

WeRide has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for WeRide and REE Automotive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	1	7	0	2.67
REE Automotive	1	0	0	0	1.00

WeRide currently has a consensus price target of $12.48, suggesting a potential upside of 87.72%. Given WeRide’s stronger consensus rating and higher possible upside, equities research analysts plainly believe WeRide is more favorable than REE Automotive.

Insider & Institutional Ownership

12.7% of REE Automotive shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

REE Automotive beats WeRide on 7 of the 13 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 REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.