Continental (OTCMKTS:CTTAY – Get Free Report) and U Power (NASDAQ:UCAR – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Volatility & Risk
Continental has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, U Power has a beta of 8.06, indicating that its stock price is 706% more volatile than the S&P 500.
Valuation and Earnings
This table compares Continental and U Power”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Continental | $22.26 billion | 0.71 | -$186.68 million | ($0.16) | -49.69 |
| U Power | $5.85 million | 0.10 | -$9.78 million | N/A | N/A |
U Power has lower revenue, but higher earnings than Continental.
Analyst Recommendations
This is a summary of recent recommendations for Continental and U Power, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Continental | 0 | 5 | 3 | 0 | 2.38 |
| U Power | 1 | 0 | 1 | 0 | 2.00 |
U Power has a consensus target price of $50.00, suggesting a potential upside of 3,746.15%. Given U Power’s higher probable upside, analysts clearly believe U Power is more favorable than Continental.
Profitability
This table compares Continental and U Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Continental | 0.19% | -4.93% | -0.92% |
| U Power | N/A | N/A | N/A |
Institutional and Insider Ownership
0.0% of Continental shares are held by institutional investors. Comparatively, 13.2% of U Power shares are held by institutional investors. 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.
Summary
U Power beats Continental on 6 of the 11 factors compared between the two stocks.
About Continental
Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
About U Power
U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.
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