Critical Review: WeRide (WRD) vs. Its Peers

WeRide (NASDAQ:WRD) is one of 71 public companies in the “AUTO/TRUCK – ORIG” industry, but how does it compare to its competitors? We will compare WeRide to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

This table compares WeRide and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	-595.64%	-49.03%	-28.72%
WeRide Competitors	-1,304.55%	-138.83%	-6.71%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for WeRide and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	0	0	1	0	3.00
WeRide Competitors	562	3189	4483	203	2.51

WeRide presently has a consensus price target of $12.00, suggesting a potential upside of 30.58%. As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 16.43%. Given WeRide’s stronger consensus rating and higher probable upside, equities analysts clearly believe WeRide is more favorable than its competitors.

Valuation & Earnings

This table compares WeRide and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WeRide	$49.47 million	-$350.09 million	-3.29
WeRide Competitors	$6.66 billion	$183.38 million	10.57

WeRide’s competitors have higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

65.0% of shares of all “AUTO/TRUCK – ORIG” companies are owned by institutional investors. 2.7% of WeRide shares are owned by insiders. Comparatively, 7.9% of shares of all “AUTO/TRUCK – ORIG” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

WeRide competitors beat WeRide on 7 of the 12 factors compared.

WeRide Company Profile

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.