Comparing Workhorse Group (NASDAQ:WKHS) & Luminar Technologies (NASDAQ:LAZR)

Workhorse Group (NASDAQ:WKHS) and Luminar Technologies (NASDAQ:LAZR) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Workhorse Group and Luminar Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workhorse Group	$10.75 million	1.84	-$101.79 million	($99.75)	-0.01
Luminar Technologies	$75.39 million	1.77	-$273.14 million	($2.80)	-0.69

Workhorse Group has higher earnings, but lower revenue than Luminar Technologies. Luminar Technologies 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 Luminar Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workhorse Group	1	1	0	0	1.50
Luminar Technologies	2	2	0	0	1.50

Workhorse Group currently has a consensus target price of $15.63, suggesting a potential upside of 1,402.40%. Luminar Technologies has a consensus target price of $8.50, suggesting a potential upside of 338.14%. Given Workhorse Group’s higher probable upside, research analysts clearly believe Workhorse Group is more favorable than Luminar Technologies.

Profitability

This table compares Workhorse Group and Luminar Technologies’ 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%
Luminar Technologies	-160.33%	N/A	-91.91%

Insider & Institutional Ownership

16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 31.0% of Luminar Technologies shares are held by institutional investors. 1.9% of Workhorse Group shares are held by insiders. Comparatively, 11.2% of Luminar Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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, Luminar Technologies has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

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 Luminar Technologies

Luminar Technologies, Inc., an automotive technology company, provides sensor technologies and software for passenger cars and commercial trucks in North America, the Asia Pacific, Europe, and the Middle East. It operates in two segments, Autonomy Solutions and Advanced Technologies and Services. The Autonomy Solutions segment designs, manufactures, and sells laser imaging, detection, and ranging sensors or lidars, as well as related perception and autonomy software solutions primarily for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi, and adjacent industries. The Advanced Technologies and Services segment develops application-specific integrated circuits, pixel-based sensors, and advanced lasers. This segment also designs, tests, and provides consulting services for non-standard integrated circuits for use in automobile and aeronautics sector, as well as government spending in military and defense activities. The company was founded in 2012 and is headquartered in Orlando, Florida.