Tuesday, March 12, 2019

Head-To-Head Survey: Workhorse Group (WKHS) vs. Fiat Chrysler Automobiles (FCAU)

Workhorse Group (NASDAQ:WKHS) and Fiat Chrysler Automobiles (NYSE:FCAU) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

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Workhorse Group has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Fiat Chrysler Automobiles has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.

Insider and Institutional Ownership

9.7% of Workhorse Group shares are owned by institutional investors. Comparatively, 25.3% of Fiat Chrysler Automobiles shares are owned by institutional investors. 2.8% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Workhorse Group and Fiat Chrysler Automobiles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Workhorse Group -499.90% -1,564.64% -241.24%
Fiat Chrysler Automobiles 3.15% 21.83% 5.02%

Analyst Recommendations

This is a summary of current ratings and price targets for Workhorse Group and Fiat Chrysler Automobiles, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workhorse Group 0 0 2 0 3.00
Fiat Chrysler Automobiles 0 5 5 0 2.50

Workhorse Group presently has a consensus target price of $4.00, indicating a potential upside of 334.78%. Fiat Chrysler Automobiles has a consensus target price of $21.07, indicating a potential upside of 46.29%. Given Workhorse Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Workhorse Group is more favorable than Fiat Chrysler Automobiles.

Earnings & Valuation

This table compares Workhorse Group and Fiat Chrysler Automobiles’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workhorse Group $10.85 million 4.94 -$41.21 million ($1.09) -0.84
Fiat Chrysler Automobiles $136.30 billion 0.21 $4.29 billion $3.78 3.81

Fiat Chrysler Automobiles has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than Fiat Chrysler Automobiles, indicating that it is currently the more affordable of the two stocks.

Summary

Fiat Chrysler Automobiles beats Workhorse Group on 10 of the 14 factors compared between the two stocks.

About Workhorse Group

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones and truck systems. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.

About Fiat Chrysler Automobiles

Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, manufactures, distributes, and sells vehicles, components, and production systems. The company operates through five segments: NAFTA, LATAM, APAC, EMEA, and Maserati. It provides passenger cars, SUV vehicles, trucks, and light commercial vehicles under the Jeep, Ram, Dodge, Chrysler, Fiat, Fiat Professional, Alfa Romeo, and Abarth brands; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand. The company also provides cast iron components for engines, gearboxes, transmissions and suspension systems, aluminum cylinder heads, and engine blocks under the Teksid brand; and designs and produces industrial automation systems and related products for the automotive industry under the Comau brand name. In addition, it provides retail and dealer financings, and leasing and rental services; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 135 countries. The company was formerly known as Fiat S.p.A. and changed its name to Fiat Chrysler Automobiles N.V. in October 2014. Fiat Chrysler Automobiles N.V. was founded in 1899 and is based in London, the United Kingdom.

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