Comparing WeRide (NASDAQ:WRD) & Autoliv (NYSE:ALV)

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

Risk & Volatility

WeRide has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares WeRide and Autoliv”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$97.89 million	26.07	-$230.20 million	($0.75)	-10.72
Autoliv	$10.82 billion	0.77	$735.00 million	$9.56	11.65

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

Insider & Institutional Ownership

69.6% of Autoliv shares are held by institutional investors. 2.7% of WeRide shares are held by insiders. Comparatively, 0.3% of Autoliv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares WeRide and Autoliv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	-240.54%	-24.38%	-21.89%
Autoliv	6.80%	30.42%	9.01%

Analyst Ratings

This is a breakdown of current recommendations and price targets for WeRide and Autoliv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	7	1	2.89
Autoliv	0	5	9	0	2.64

WeRide currently has a consensus target price of $12.48, indicating a potential upside of 55.27%. Autoliv has a consensus target price of $134.38, indicating a potential upside of 20.60%. Given WeRide’s stronger consensus rating and higher possible upside, research analysts clearly believe WeRide is more favorable than Autoliv.

Summary

Autoliv beats WeRide on 9 of the 15 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 Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.