Critical Review: Workhorse Group (NASDAQ:WKHS) and Valeo (OTCMKTS:VLEEY)

Valeo (OTCMKTS:VLEEY) and Workhorse Group (NASDAQ:WKHS) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Valeo and Workhorse Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valeo	N/A	N/A	N/A
Workhorse Group	-606.64%	-232.69%	-71.18%

Analyst Ratings

This is a breakdown of current ratings for Valeo and Workhorse Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valeo	0	6	1	1	2.38
Workhorse Group	1	0	0	0	1.00

Risk and Volatility

Valeo has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Valeo shares are held by institutional investors. Comparatively, 16.0% of Workhorse Group shares are held by institutional investors. 1.9% of Workhorse Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Valeo and Workhorse Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valeo	$23.26 billion	0.15	$175.30 million	N/A	N/A
Workhorse Group	$6.62 million	1.86	-$101.79 million	($85.96)	-0.07

Valeo has higher revenue and earnings than Workhorse Group.

Summary

Valeo beats Workhorse Group on 8 of the 12 factors compared between the two stocks.

About Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.

About Workhorse Group

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.