LCI Industries (NYSE:LCII – Get Free Report) and WeRide (NASDAQ:WRD – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Profitability
This table compares LCI Industries and WeRide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LCI Industries | 4.99% | 14.51% | 6.36% |
| WeRide | -199.09% | -24.12% | -20.92% |
Earnings & Valuation
This table compares LCI Industries and WeRide”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LCI Industries | $3.98 billion | 0.60 | $188.25 million | $8.10 | 12.07 |
| WeRide | $97.89 million | 14.15 | -$230.20 million | ($0.75) | -5.95 |
LCI Industries has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for LCI Industries and WeRide, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LCI Industries | 0 | 7 | 2 | 0 | 2.22 |
| WeRide | 1 | 2 | 7 | 0 | 2.60 |
LCI Industries presently has a consensus price target of $113.50, suggesting a potential upside of 16.07%. WeRide has a consensus price target of $10.35, suggesting a potential upside of 132.06%. Given WeRide’s stronger consensus rating and higher possible upside, analysts clearly believe WeRide is more favorable than LCI Industries.
Volatility and Risk
LCI Industries has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, WeRide has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Insider and Institutional Ownership
99.7% of LCI Industries shares are owned by institutional investors. 3.3% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
LCI Industries beats WeRide on 9 of the 14 factors compared between the two stocks.
About LCI Industries
LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates through two segments: Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles, ABS, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct to retail customers through the Internet. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1956 and is based in Elkhart, Indiana.
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.
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