Aptiv (NYSE:APTV – Get Free Report) and WeRide (NASDAQ:WRD – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for Aptiv and WeRide, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aptiv | 1 | 1 | 22 | 0 | 2.88 |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
Aptiv presently has a consensus price target of $82.67, suggesting a potential upside of 37.01%. WeRide has a consensus price target of $12.48, suggesting a potential upside of 123.12%. Given WeRide’s higher possible upside, analysts plainly believe WeRide is more favorable than Aptiv.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aptiv | $20.40 billion | 0.63 | $165.00 million | $1.69 | 35.70 |
| WeRide | $97.89 million | 17.82 | -$230.20 million | ($0.75) | -7.46 |
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.
Risk and Volatility
Aptiv has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Profitability
This table compares Aptiv and WeRide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aptiv | 1.77% | 17.83% | 7.08% |
| WeRide | -228.47% | -24.18% | -21.45% |
Insider and Institutional Ownership
94.2% of Aptiv shares are held by institutional investors. 0.1% of Aptiv shares are held by insiders. Comparatively, 2.7% of WeRide shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Aptiv beats WeRide on 10 of the 14 factors compared between the two stocks.
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.
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.
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