Head-To-Head Analysis: Continental (OTCMKTS:CTTAY) & Workhorse Group (NASDAQ:WKHS)

Continental (OTCMKTS:CTTAY) and Workhorse Group (NASDAQ:WKHS) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility & Risk

Continental has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Continental shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 1.9% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Continental and Workhorse Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental	0	2	1	1	2.75
Workhorse Group	0	1	0	0	2.00

Workhorse Group has a consensus target price of $15.63, indicating a potential upside of 846.97%. Given Workhorse Group’s higher possible upside, analysts clearly believe Workhorse Group is more favorable than Continental.

Profitability

This table compares Continental and Workhorse Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Continental	3.71%	9.84%	3.84%
Workhorse Group	-1,576.17%	-194.02%	-84.66%

Earnings and Valuation

This table compares Continental and Workhorse Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Continental	$42.98 billion	0.40	$1.26 billion	$0.70	12.20
Workhorse Group	$6.62 million	2.36	-$101.79 million	($99.75)	-0.02

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

Summary

Continental beats Workhorse Group on 10 of the 15 factors compared between the two stocks.

About Continental

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

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.