Analyzing WeRide (NASDAQ:WRD) & Miller Industries (NYSE:MLR)

WeRide (NASDAQ:WRD) and Miller Industries (NYSE:MLR) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	2	0	2.33
Miller Industries	0	2	1	0	2.33

WeRide presently has a consensus target price of $13.75, suggesting a potential upside of 70.93%. Miller Industries has a consensus target price of $55.00, suggesting a potential upside of 41.06%. Given WeRide’s higher possible upside, analysts clearly believe WeRide is more favorable than Miller Industries.

Institutional and Insider Ownership

79.2% of Miller Industries shares are owned by institutional investors. 4.4% of Miller Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares WeRide and Miller Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$49.47 million	47.89	-$350.09 million	($2.79)	-2.88
Miller Industries	$840.26 million	0.53	$63.49 million	$2.60	15.00

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

Profitability

This table compares WeRide and Miller Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	-595.64%	-49.24%	-28.80%
Miller Industries	4.35%	10.48%	6.33%

Summary

Miller Industries beats WeRide on 9 of the 12 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 Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.