Analyzing Autoliv (NYSE:ALV) & WeRide (NASDAQ:WRD)

Autoliv (NYSE:ALV) and WeRide (NASDAQ:WRD) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation & Earnings

This table compares Autoliv and WeRide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoliv	$10.82 billion	0.82	$735.00 million	$9.56	12.47
WeRide	$97.89 million	26.62	-$230.20 million	($0.75)	-10.95

Autoliv has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Autoliv and WeRide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoliv	0	5	9	0	2.64
WeRide	1	0	7	1	2.89

Autoliv currently has a consensus target price of $134.38, suggesting a potential upside of 12.76%. WeRide has a consensus target price of $12.48, suggesting a potential upside of 52.05%. Given WeRide’s stronger consensus rating and higher possible upside, analysts clearly believe WeRide is more favorable than Autoliv.

Insider and Institutional Ownership

69.6% of Autoliv shares are held by institutional investors. 0.3% of Autoliv shares are held by insiders. Comparatively, 2.7% of WeRide shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Autoliv and WeRide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autoliv	6.80%	30.42%	9.01%
WeRide	-240.54%	-24.38%	-21.89%

Volatility & Risk

Autoliv has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, WeRide has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500.

Summary

Autoliv beats WeRide on 9 of the 15 factors compared between the two stocks.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.

About WeRide

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.