Head-To-Head Contrast: Worksport (NASDAQ:WKSP) & Lear (NYSE:LEA)

Lear (NYSE:LEA) and Worksport (NASDAQ:WKSP) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares Lear and Worksport’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lear	2.35%	14.18%	4.88%
Worksport	-114.49%	-102.57%	-73.69%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lear and Worksport, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	12	3	1	2.31
Worksport	1	1	0	0	1.50

Lear presently has a consensus price target of $143.58, suggesting a potential upside of 21.20%. Worksport has a consensus price target of $2.00, suggesting a potential upside of 606.71%. Given Worksport’s higher possible upside, analysts clearly believe Worksport is more favorable than Lear.

Insider and Institutional Ownership

97.0% of Lear shares are owned by institutional investors. Comparatively, 16.1% of Worksport shares are owned by institutional investors. 1.0% of Lear shares are owned by insiders. Comparatively, 5.8% of Worksport shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Lear and Worksport”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.26 billion	0.25	$436.80 million	$10.73	11.04
Worksport	$16.10 million	0.35	-$19.35 million	($2.34)	-0.12

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

Volatility and Risk

Lear has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Worksport has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Summary

Lear beats Worksport on 12 of the 15 factors compared between the two stocks.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About Worksport

Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.