In a detailed analysis of two automotive companies, Workhorse Group (NASDAQ: WKHS) and Proliance International (OTCMKTS: PLNTQ), contrasting financial metrics reveal significant differences in their market positions. Investors are keen to understand which stock offers better potential based on earnings, profitability, valuation, and overall risk.
Financial Overview and Valuation
Workhorse Group reported a gross revenue of $6.62 million, with a price-to-sales ratio of 1.58. However, the company faced a net loss of $101.79 million, leading to an earnings per share (EPS) of -$85.96. In contrast, Proliance International’s financial figures remain undisclosed, making direct comparisons challenging.
Despite its lower revenue, Proliance International appears to have higher earnings, although specific figures were not provided. This indicates a potentially more favorable profitability scenario compared to Workhorse Group.
Workhorse Group’s valuation metrics reflect its current challenges. The company has a price-to-earnings ratio of -0.06, which underscores the difficulties it faces in achieving profitability. Investors should note that negative earnings ratios can indicate a high-risk investment.
Volatility and Analyst Insights
In terms of stock volatility, Workhorse Group has a beta of 2.41, indicating its stock price is 141% more volatile than the S&P 500. This level of volatility may raise concerns for risk-averse investors. Conversely, Proliance International has a beta of 3.84, suggesting an even greater volatility of 284% compared to the S&P 500, marking it as a significantly riskier investment.
According to recent data from MarketBeat.com, analyst recommendations lean heavily towards Workhorse Group, which has received a consensus rating of 1.00—consisting entirely of sell ratings. Proliance International, on the other hand, has not received any ratings, indicating a lack of analyst coverage or confidence, but also leaves room for potential upside.
The profitability metrics further highlight the disparity between the two companies. Workhorse Group’s net margins stand at -606.64%, with a return on equity of -232.69% and return on assets at -71.18%. These figures suggest significant operational challenges. Proliance International’s profitability metrics are not available, making it difficult to assess its performance directly.
Ownership and Institutional Confidence
Institutional ownership plays a crucial role in assessing a company’s potential for growth. Currently, 16.0% of Workhorse Group shares are held by institutional investors, with an additional 1.9% held by insiders. In comparison, Proliance International has 5.3% of its shares held by insiders, which might indicate a lesser degree of institutional confidence.
The presence of institutional investors often suggests a belief in the long-term viability of the company, making Workhorse Group’s higher institutional ownership a point of interest for potential investors.
Company Profiles
Workhorse Group Inc., founded in 2007 and based in Sharonville, Ohio, specializes in the design and manufacture of zero-emission commercial vehicles. The firm, previously known as AMP Holding Inc., rebranded to Workhorse Group in April 2015.
Proliance International, Inc., established in 1915 and headquartered in New Haven, Connecticut, focuses on the design, manufacture, and marketing of heat exchange products for the automotive and light truck aftermarket. The company, formerly known as Transpro, Inc., changed its name to Proliance International in July 2005.
In conclusion, while Proliance International exhibits potential advantages in terms of earnings and analyst sentiment, the absence of detailed financial metrics creates a challenge for investors. Workhorse Group, despite its struggles, has stronger institutional backing but faces significant operational hurdles. Each company presents distinct risks and opportunities, warranting careful consideration from investors.
