Investors are weighing the merits of Workhorse Group (NASDAQ: WKHS) and Proliance International (OTCMKTS: PLNTQ) as both companies operate within the automotive sector. This article compares their financial performance, risk profiles, and analyst recommendations to determine which stock may be the more attractive investment.
Financial Performance and Valuation
Financial metrics reveal stark differences between the two companies. Workhorse Group reported a gross revenue of $6.62 million and an earnings per share (EPS) of ($85.96), resulting in a Price/Sales ratio of 1.58. In contrast, Proliance International did not disclose gross revenue or earnings, complicating direct comparisons. However, it is noted that Proliance has higher earnings despite lower revenue figures.
When evaluating profitability, Workhorse Group presented a net income of ($101.79 million), resulting in a net margin of -606.64%. The company’s return on equity and return on assets were equally concerning at -232.69% and -71.18%, respectively. In comparison, specific profitability metrics for Proliance International remain unavailable, making it challenging to assess its financial health directly.
Volatility and Risk Assessment
The risk associated with these stocks is an important consideration for investors. Workhorse Group has a beta of 2.41, indicating its stock price is 141% more volatile than the S&P 500 index. Proliance International exhibits even greater volatility, with a beta of 3.84, suggesting its stock price is 284% more volatile than the broader market. This information indicates that both stocks carry significant risk, with Proliance being the more volatile option.
Analysts have also weighed in on the two companies. According to MarketBeat.com, Workhorse Group received no buy or strong buy ratings, resulting in a score of 1.00 based on its hold ratings. Conversely, Proliance International has not garnered any ratings, resulting in a score of 0.00. Analysts appear to favor Proliance for its potential upside, despite the lack of concrete earnings data.
Institutional ownership reflects confidence in a company’s potential. Approximately 16.0% of Workhorse Group shares are held by institutional investors, while insiders own 1.9% of the company. In contrast, Proliance International has 5.3% of its shares held by insiders, indicating a greater level of insider confidence compared to Workhorse.
Company Profiles
Workhorse Group is a technology firm based in Sharonville, Ohio, specializing in the design, manufacturing, and sale of zero-emission commercial vehicles. Founded in 2007, the company aims to innovate within the automotive space. Formerly known as AMP Holding Inc., it rebranded to Workhorse Group Inc. in April 2015.
Proliance International, headquartered in New Haven, Connecticut, focuses on designing, manufacturing, and marketing heat exchange products and temperature control parts for the automotive aftermarket. Established in 1915, it offers a wide range of products, including radiators and air conditioning components. The company was previously named Transpro, Inc. before changing its name to Proliance International, Inc. in July 2005.
In conclusion, while Proliance International outperforms Workhorse Group across several key metrics, the lack of disclosed financial data makes a definitive comparison challenging. Investors should consider their risk tolerance and the volatility associated with both stocks before making investment decisions.
