Reviewing Lotus Technology (NASDAQ:LOT) & Workhorse Group (NASDAQ:WKHS)

Lotus Technology (NASDAQ:LOTGet Free Report) and Workhorse Group (NASDAQ:WKHSGet Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Risk and Volatility

Lotus Technology has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lotus Technology and Workhorse Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lotus Technology $679.01 million 0.27 -$742.00 million ($0.48) -13.29
Workhorse Group $13.10 million 3.95 -$123.92 million ($0.59) -0.28

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

Profitability

This table compares Lotus Technology and Workhorse Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lotus Technology N/A -0.62% -39.40%
Workhorse Group -946.32% -121.46% -76.70%

Institutional & Insider Ownership

63.4% of Lotus Technology shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 0.2% of Lotus Technology shares are owned by company insiders. Comparatively, 1.9% 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Lotus Technology and Workhorse Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lotus Technology 0 1 0 0 2.00
Workhorse Group 1 2 1 0 2.00

Lotus Technology currently has a consensus price target of $7.00, indicating a potential upside of 9.72%. Workhorse Group has a consensus price target of $1.50, indicating a potential upside of 811.85%. Given Workhorse Group’s higher probable upside, analysts plainly believe Workhorse Group is more favorable than Lotus Technology.

Summary

Workhorse Group beats Lotus Technology on 7 of the 13 factors compared between the two stocks.

About Lotus Technology

(Get Free Report)

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

About Workhorse Group

(Get Free Report)

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. 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 Sharonville, Ohio.

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