Workhorse Group (NASDAQ:WKHS) versus Halfords Group (OTCMKTS:HLFDY) Critical Review

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

Analyst Ratings

This is a summary of current recommendations and price targets for Halfords Group and Workhorse Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halfords Group	0	0	0	0	0.00
Workhorse Group	1	1	0	0	1.50

Workhorse Group has a consensus target price of $15.63, suggesting a potential upside of 1,895.53%. Given Workhorse Group’s stronger consensus rating and higher possible upside, analysts clearly believe Workhorse Group is more favorable than Halfords Group.

Institutional and Insider Ownership

16.0% of Workhorse Group shares are held by institutional investors. 1.9% of Workhorse Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Halfords Group and Workhorse Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halfords Group	$2.19 billion	0.19	-$42.87 million	N/A	N/A
Workhorse Group	$6.62 million	2.25	-$101.79 million	($16.77)	-0.05

Halfords Group has higher revenue and earnings than Workhorse Group.

Risk and Volatility

Halfords Group has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500.

Profitability

This table compares Halfords Group and Workhorse Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halfords Group	N/A	N/A	N/A
Workhorse Group	-760.65%	-210.72%	-74.67%

Summary

Workhorse Group beats Halfords Group on 6 of the 11 factors compared between the two stocks.

About Halfords Group

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. The company operates through two segments, Retail and Car Servicing. The Retail segment is involved in the retail of automotive, leisure, cycling products and accessories, auto parts, and accessories through its stores and online. The Car Servicing segment provides car servicing and repair services from garages and mobile vans. The company also provides software as a service. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.

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.