WeRide (NASDAQ:WRD – Get Free Report) and Iochpe-Maxion (OTCMKTS:IOCJY – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Risk & Volatility
WeRide has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Iochpe-Maxion has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
Earnings & Valuation
This table compares WeRide and Iochpe-Maxion”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WeRide | $97.89 million | 19.20 | -$230.20 million | ($0.75) | -8.04 |
| Iochpe-Maxion | $2.75 billion | 0.10 | $17.62 million | $0.03 | 20.31 |
Iochpe-Maxion has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than Iochpe-Maxion, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares WeRide and Iochpe-Maxion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WeRide | -228.47% | -24.18% | -21.45% |
| Iochpe-Maxion | 0.58% | 1.89% | 0.62% |
Analyst Ratings
This is a summary of current ratings and price targets for WeRide and Iochpe-Maxion, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
| Iochpe-Maxion | 0 | 1 | 0 | 0 | 2.00 |
WeRide presently has a consensus price target of $12.48, indicating a potential upside of 107.02%. Given WeRide’s stronger consensus rating and higher probable upside, analysts clearly believe WeRide is more favorable than Iochpe-Maxion.
Summary
Iochpe-Maxion beats WeRide on 7 of the 12 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 Iochpe-Maxion
Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.
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