WeRide (NASDAQ:WRD – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Institutional and Insider Ownership
12.7% of REE Automotive shares are held by institutional investors. 2.7% of WeRide shares are held by insiders. Comparatively, 6.0% of REE Automotive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares WeRide and REE Automotive”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WeRide | $97.89 million | 23.12 | -$230.20 million | ($0.75) | -9.52 |
| REE Automotive | $180,000.00 | 54.70 | -$111.75 million | ($5.28) | -0.08 |
REE Automotive has lower revenue, but higher earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than REE Automotive, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
WeRide has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500.
Profitability
This table compares WeRide and REE Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WeRide | -228.47% | -24.69% | -21.99% |
| REE Automotive | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for WeRide and REE Automotive, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
| REE Automotive | 1 | 2 | 1 | 0 | 2.00 |
WeRide presently has a consensus target price of $12.48, suggesting a potential upside of 74.84%. REE Automotive has a consensus target price of $1.00, suggesting a potential upside of 126.09%. Given REE Automotive’s higher possible upside, analysts plainly believe REE Automotive is more favorable than WeRide.
Summary
REE Automotive beats WeRide on 10 of the 14 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 REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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