Workhorse Group (NASDAQ:WKHS – Get Free Report) and Holley (NYSE:HLLY – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Profitability
This table compares Workhorse Group and Holley’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Workhorse Group | -760.65% | -210.72% | -74.67% |
| Holley | -5.12% | 5.81% | 2.19% |
Earnings & Valuation
This table compares Workhorse Group and Holley”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workhorse Group | $6.62 million | 3.37 | -$101.79 million | ($99.75) | -0.01 |
| Holley | $602.22 million | 0.78 | -$23.24 million | ($0.26) | -14.90 |
Holley has higher revenue and earnings than Workhorse Group. Holley is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Workhorse Group and Holley, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workhorse Group | 0 | 1 | 0 | 0 | 2.00 |
| Holley | 0 | 0 | 5 | 0 | 3.00 |
Workhorse Group currently has a consensus target price of $15.6250, indicating a potential upside of 977.59%. Holley has a consensus target price of $3.75, indicating a potential downside of 3.23%. Given Workhorse Group’s higher probable upside, equities research analysts plainly believe Workhorse Group is more favorable than Holley.
Volatility & Risk
Workhorse Group has a beta of 2.62, suggesting that its share price is 162% more volatile than the S&P 500. Comparatively, Holley has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Insider & Institutional Ownership
16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 39.7% of Holley shares are held by institutional investors. 1.9% of Workhorse Group shares are held by company insiders. Comparatively, 4.3% of Holley shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Holley beats Workhorse Group on 10 of the 14 factors compared between the two stocks.
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.
About Holley
Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.
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