WeRide (NASDAQ:WRD – Get Free Report) and Motorcar Parts of America (NASDAQ:MPAA – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Institutional and Insider Ownership
83.5% of Motorcar Parts of America shares are held by institutional investors. 2.7% of WeRide shares are held by insiders. Comparatively, 8.4% of Motorcar Parts of America shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares WeRide and Motorcar Parts of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WeRide | -199.09% | -24.12% | -20.92% |
| Motorcar Parts of America | -0.53% | -0.57% | -0.15% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WeRide | $97.89 million | 17.77 | -$230.20 million | ($0.75) | -7.47 |
| Motorcar Parts of America | $789.81 million | 0.25 | $12.39 million | ($0.31) | -34.10 |
Motorcar Parts of America has higher revenue and earnings than WeRide. Motorcar Parts of America is trading at a lower price-to-earnings ratio than WeRide, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for WeRide and Motorcar Parts of America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WeRide | 1 | 1 | 7 | 0 | 2.67 |
| Motorcar Parts of America | 1 | 1 | 2 | 0 | 2.25 |
WeRide presently has a consensus target price of $12.27, indicating a potential upside of 119.05%. Motorcar Parts of America has a consensus target price of $18.00, indicating a potential upside of 70.29%. Given WeRide’s stronger consensus rating and higher possible upside, analysts plainly believe WeRide is more favorable than Motorcar Parts of America.
Risk and Volatility
WeRide has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Summary
Motorcar Parts of America beats WeRide on 8 of the 14 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 Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.
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