Lear (NYSE:LEA) versus WeRide (NASDAQ:WRD) Head-To-Head Contrast

Lear (NYSE:LEA) and WeRide (NASDAQ:WRD) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lear and WeRide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	9	5	1	2.47
WeRide	1	1	7	0	2.67

Lear currently has a consensus target price of $144.62, indicating a potential downside of 0.96%. WeRide has a consensus target price of $12.48, indicating a potential upside of 109.80%. Given WeRide’s stronger consensus rating and higher possible upside, analysts clearly believe WeRide is more favorable than Lear.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lear	2.25%	13.69%	4.71%
WeRide	-228.47%	-24.18%	-21.45%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.26 billion	0.31	$436.80 million	$10.00	14.60
WeRide	$97.89 million	18.88	-$230.20 million	($0.75)	-7.93

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

Institutional & Insider Ownership

97.0% of Lear shares are owned by institutional investors. 1.0% of Lear shares are owned by insiders. Comparatively, 2.7% of WeRide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Lear has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Summary

Lear beats WeRide on 9 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 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.