Critical Review: SmartRent (NYSE:SMRT) and WeRide (NASDAQ:WRD)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$365.08 million	16.94	-$275.41 million	N/A	N/A
SmartRent	$236.84 million	1.15	-$34.59 million	($0.13)	-10.88

SmartRent has lower revenue, but higher earnings than WeRide.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WeRide and SmartRent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	0	0	0	0	0.00
SmartRent	0	5	0	0	2.00

SmartRent has a consensus target price of $2.50, suggesting a potential upside of 76.68%. Given SmartRent’s stronger consensus rating and higher possible upside, analysts plainly believe SmartRent is more favorable than WeRide.

Institutional & Insider Ownership

59.4% of SmartRent shares are owned by institutional investors. 2.7% of WeRide shares are owned by insiders. Comparatively, 9.0% of SmartRent shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WeRide	N/A	N/A	N/A
SmartRent	-12.77%	-6.08%	-4.15%

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.

About SmartRent

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.