Head-To-Head Review: WeRide (NASDAQ:WRD) vs. REE Automotive (NASDAQ:REE)

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

Analyst Recommendations

This is a summary of current ratings and price targets for REE Automotive and WeRide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	1	2	1	0	2.00
WeRide	1	1	7	0	2.67

REE Automotive currently has a consensus price target of $1.00, indicating a potential upside of 126.09%. WeRide has a consensus price target of $12.48, indicating a potential upside of 74.84%. Given REE Automotive’s higher possible upside, analysts clearly believe REE Automotive is more favorable than WeRide.

Risk & Volatility

REE Automotive has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	N/A	N/A
WeRide	-228.47%	-24.69%	-21.99%

Earnings and Valuation

This table compares REE Automotive and WeRide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$180,000.00	54.70	-$111.75 million	($5.28)	-0.08
WeRide	$97.89 million	23.12	-$230.20 million	($0.75)	-9.52

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

Insider and Institutional Ownership

12.7% of REE Automotive shares are owned by institutional investors. 6.0% of REE Automotive shares are owned by insiders. Comparatively, 2.7% of WeRide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

REE Automotive beats WeRide on 10 of the 14 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

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.