Head-To-Head Contrast: WeRide (NASDAQ:WRD) & XPEL (NASDAQ:XPEL)

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

Institutional & Insider Ownership

75.1% of XPEL shares are owned by institutional investors. 9.5% of XPEL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares WeRide and XPEL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$97.89 million	26.61	-$230.20 million	($0.75)	-10.95
XPEL	$476.20 million	2.72	$51.23 million	$1.85	25.41

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

Analyst Ratings

This is a breakdown of recent ratings for WeRide and XPEL, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	7	1	2.89
XPEL	1	1	0	0	1.50

WeRide presently has a consensus price target of $12.48, suggesting a potential upside of 52.05%. Given WeRide’s stronger consensus rating and higher probable upside, equities analysts plainly believe WeRide is more favorable than XPEL.

Risk & Volatility

WeRide has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WeRide	-240.54%	-24.38%	-21.89%
XPEL	10.76%	19.51%	14.81%

Summary

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

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.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.