Adient (NYSE:ADNT – Get Free Report) and WeRide (NASDAQ:WRD – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
92.4% of Adient shares are held by institutional investors. 0.7% of Adient shares are held by insiders. Comparatively, 2.7% of WeRide shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Adient and WeRide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adient | -1.86% | 7.70% | 1.90% |
| WeRide | -595.64% | -49.03% | -28.72% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adient | $14.38 billion | 0.13 | $18.00 million | ($3.20) | -7.15 |
| WeRide | $49.47 million | 46.66 | -$350.09 million | ($2.79) | -3.11 |
Adient has higher revenue and earnings than WeRide. Adient is trading at a lower price-to-earnings ratio than WeRide, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Adient and WeRide, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adient | 2 | 7 | 0 | 0 | 1.78 |
| WeRide | 0 | 0 | 1 | 0 | 3.00 |
Adient currently has a consensus target price of $20.0625, indicating a potential downside of 12.30%. WeRide has a consensus target price of $12.00, indicating a potential upside of 38.41%. Given WeRide’s stronger consensus rating and higher possible upside, analysts plainly believe WeRide is more favorable than Adient.
Summary
WeRide beats Adient on 7 of the 13 factors compared between the two stocks.
About Adient
Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 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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