Financial Survey: WeRide (NASDAQ:WRD) and PHINIA (NYSE:PHIN)

PHINIA (NYSE:PHINGet Free Report) and WeRide (NASDAQ:WRDGet Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
PHINIA 3.73% 13.86% 5.62%
WeRide -199.09% -24.12% -20.92%

Analyst Ratings

This is a breakdown of recent ratings and price targets for PHINIA and WeRide, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PHINIA 1 3 3 1 2.50
WeRide 1 1 7 0 2.67

PHINIA currently has a consensus price target of $86.50, indicating a potential upside of 30.68%. WeRide has a consensus price target of $12.27, indicating a potential upside of 113.33%. Given WeRide’s stronger consensus rating and higher possible upside, analysts clearly believe WeRide is more favorable than PHINIA.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PHINIA $3.48 billion 0.70 $130.00 million $3.49 18.97
WeRide $97.89 million 18.25 -$230.20 million ($0.75) -7.67

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

Risk and Volatility

PHINIA has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Institutional and Insider Ownership

90.9% of PHINIA shares are owned by institutional investors. 2.2% of PHINIA shares are owned by company insiders. Comparatively, 2.7% of WeRide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

PHINIA beats WeRide on 9 of the 15 factors compared between the two stocks.

About PHINIA

(Get Free Report)

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.

About WeRide

(Get Free Report)

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.

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