Critical Analysis: Worksport (OTCMKTS:WKSP) and Tenneco (NYSE:TEN)

Worksport (OTCMKTS:WKSPGet Rating) and Tenneco (NYSE:TENGet Rating) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Worksport and Tenneco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worksport 0 0 1 0 3.00
Tenneco 0 4 0 0 2.00

Worksport currently has a consensus target price of $8.00, suggesting a potential upside of 161.44%. Tenneco has a consensus target price of $20.00, suggesting a potential upside of 10.56%. Given Worksport’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Worksport is more favorable than Tenneco.

Valuation and Earnings

This table compares Worksport and Tenneco’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Worksport $300,000.00 173.00 -$7.90 million ($0.70) -4.37
Tenneco $18.04 billion 0.08 $35.00 million $0.42 43.10

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

Profitability

This table compares Worksport and Tenneco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worksport -2,598.03% -34.32% -31.74%
Tenneco 0.19% 59.64% 1.40%

Institutional & Insider Ownership

0.9% of Worksport shares are owned by institutional investors. Comparatively, 71.8% of Tenneco shares are owned by institutional investors. 15.7% of Worksport shares are owned by insiders. Comparatively, 1.4% of Tenneco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Worksport has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Tenneco has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

Summary

Tenneco beats Worksport on 9 of the 14 factors compared between the two stocks.

About Worksport (Get Rating)

Worksport Ltd., through its subsidiary, designs, manufactures, and distributes truck tonneau covers in Canada and the United States. The company offers soft cover (SC) and tough cover (TC) tonneau covers, including SC3, a tri-fold cover that seals around the truck bed with a rubber gasket designed to protect cargo from moisture and debris; SC3pro that allows the operator to open the cover by pulling a release cable; and TC3, a thick aluminum tri-cover panel with a honey-comb core coated in a durable black scratch-resistant powder coating. It is also developing TerraVis, a solar cover tonneau cover that gives rechargeable portable power to pickup truck owners. The company distributes its products through wholesalers and online retail channels. It serves private labels and original equipment manufacturers. Worksport Ltd. has a collaboration agreement with Greatcell Energy Pty Ltd. The company was formerly known as Franchise Holdings International, Inc. and changed its name to Worksport Ltd. in May 2020. Worksport Ltd. is based in Vaughan, Canada.

About Tenneco (Get Rating)

Tenneco Inc. designs, manufactures, and sells clean air, and powertrain products and systems for light vehicle, commercial truck, off-highway, industrial, motorsport, and aftermarket customers worldwide. It operates through four segments: Motorparts, Performance Solutions, Clean Air, and Powertrain. The Motorparts segment offers shock and strut, steering and suspension, braking, sealing, emissions control, engine, and maintenance products under the Monroe, Champion, Ã-hlins, MOOG, Walker, Fel-Pro, Wagner, Ferodo, Rancho, Thrush, National, Sealed Power, and other brands. The Performance Solutions segment designs, manufactures, markets, and distributes noise, vibration, and harshness performance materials; advanced suspension technologies; and ride control, braking, and systems protection products. The Clean Air segment offers catalytic converters and diesel oxidation catalysts; diesel particulate filters; burner systems; lean nitrogen oxide (NOx) traps; selective catalytic reduction (SCR) systems; hydrocarbon vaporizers and injectors; SCR-coated diesel particulate filters systems; urea dosing systems; four-way catalysts; alternative NOx reduction technologies; mufflers and resonators; fabricated exhaust manifolds; pipes; hydroformed assemblies; elastomeric hangers and isolators; and aftertreatment control units. The Powertrain segment provides pistons, piston rings, piston pins, cylinder liners, valvetrain products, valve seats and guides, ignition products, dynamic seals, bonded piston seals, combustion and exhaust gaskets, static gaskets and seals, engine bearings, industrial bearings, and bushings and washers. The company was formerly known as Tenneco Automotive Inc. and changed its name to Tenneco Inc. in 2005. Tenneco Inc. was incorporated in 1996 and is based in Southfield, Michigan.

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