Investors are increasingly weighing their options between Workhorse Group (NASDAQ: WKHS) and Proliance International (OTCMKTS: PLNTQ) as both companies operate in the auto and truck sectors. This article evaluates their financial performance, profitability, analyst recommendations, and overall risk to determine which stock may offer better value for investors.
Financial Performance and Valuation
Workhorse Group reported a gross revenue of $6.62 million and an earnings per share (EPS) of -0.06, indicating a challenging financial position. The company has a price-to-sales ratio of 1.58 and a net income loss of -$101.79 million. In contrast, Proliance International has not disclosed its revenue or net income figures, making direct comparisons difficult.
Despite lower revenue, Proliance International has higher earnings than Workhorse Group, suggesting potential for better profitability in the long term. The absence of revenue data for Proliance raises questions about its current financial standing, but its performance metrics indicate a different operational focus compared to Workhorse.
Risk and Volatility Analysis
Volatility is a key consideration for investors. Workhorse Group has a beta of 2.41, making it 141% more volatile than the S&P 500 index. Proliance International’s beta is even higher at 3.84, indicating that its stock price is 284% more volatile than the benchmark. This suggests that while both stocks are subject to significant price fluctuations, Proliance may present a higher risk level.
Institutional ownership can also provide insights into investor confidence. Approximately 16.0% of Workhorse Group shares are held by institutional investors, while insiders hold 1.9% of the company. In comparison, Proliance International has 5.3% of its shares held by insiders, indicating varying levels of confidence among stakeholders.
Analysts have offered contrasting recommendations for the two companies. Workhorse Group has a rating score of 1.00 based on recent evaluations, with all ratings categorized as “sell.” In contrast, Proliance International does not have any recent ratings, indicating a lack of consensus among analysts.
Company Overviews
Founded in 2007 and headquartered in Sharonville, Ohio, Workhorse Group focuses on designing and manufacturing zero-emission commercial vehicles in the United States. The company has undergone significant changes since its inception, rebranding from AMP Holding Inc. in April 2015 to its current name.
Proliance International, established in 1915 and based in New Haven, Connecticut, specializes in the design, manufacture, and marketing of heat exchange products and temperature control parts for the automotive aftermarket. The company’s diverse product line includes radiators, condensers, and air conditioning components, catering to various sectors including automotive and marine applications.
In summary, while Proliance International demonstrates stronger earnings potential compared to Workhorse Group, the lack of available revenue data complicates a comprehensive evaluation. Investors should consider their risk tolerance and investment strategy before choosing between these two companies, as both present unique opportunities and challenges in the current market landscape.