Workhorse Group (NASDAQ:WKHS – Get Free Report) and Lear (NYSE:LEA – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Volatility and Risk
Workhorse Group has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares Workhorse Group and Lear”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 | 2.99 | -$101.79 million | ($99.75) | -0.01 |
| Lear | $23.31 billion | 0.22 | $506.60 million | $8.57 | 11.29 |
Lear has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Workhorse Group and Lear’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% |
| Lear | 2.05% | 13.94% | 4.63% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Workhorse Group and Lear, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workhorse Group | 1 | 1 | 0 | 0 | 1.50 |
| Lear | 0 | 9 | 3 | 0 | 2.25 |
Workhorse Group presently has a consensus price target of $15.63, suggesting a potential upside of 1,402.40%. Lear has a consensus price target of $113.70, suggesting a potential upside of 17.51%. Given Workhorse Group’s higher probable upside, research analysts plainly believe Workhorse Group is more favorable than Lear.
Institutional & Insider Ownership
16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 97.0% of Lear shares are held by institutional investors. 1.9% of Workhorse Group shares are held by company insiders. Comparatively, 0.9% of Lear shares are held by company 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
Lear 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 Lear
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
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