Head to Head Contrast: Westport Fuel Systems (NASDAQ:WPRT) versus U Power (NASDAQ:UCAR)

Westport Fuel Systems (NASDAQ:WPRT) and U Power (NASDAQ:UCAR) 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 profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

21.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 13.2% of U Power shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Westport Fuel Systems and U Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westport Fuel Systems	-16.85%	-16.12%	-7.34%
U Power	N/A	N/A	N/A

Valuation and Earnings

This table compares Westport Fuel Systems and U Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westport Fuel Systems	$302.30 million	0.13	-$21.84 million	($2.93)	-0.77
U Power	$6.07 million	1.45	-$6.57 million	N/A	N/A

U Power has lower revenue, but higher earnings than Westport Fuel Systems.

Volatility and Risk

Westport Fuel Systems has a beta of 2.9, indicating that its share price is 190% more volatile than the S&P 500. Comparatively, U Power has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Westport Fuel Systems and U Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westport Fuel Systems	0	1	1	0	2.50
U Power	0	0	1	0	3.00

Westport Fuel Systems currently has a consensus price target of $6.93, suggesting a potential upside of 206.78%. U Power has a consensus price target of $5.00, suggesting a potential upside of 150.63%. Given Westport Fuel Systems’ higher possible upside, research analysts plainly believe Westport Fuel Systems is more favorable than U Power.

Summary

U Power beats Westport Fuel Systems on 6 of the 11 factors compared between the two stocks.

About Westport Fuel Systems

Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.