Workhorse Group and Proliance International: A Comparative Analysis

Workhorse Group (NASDAQ:WKHS) and Proliance International (OTCMKTS:PLNTQ) are two companies in the automotive sector, focusing on different niches within the industry. This article compares their financial performance, risk profiles, and analyst recommendations to determine which stock may offer better investment potential.

Financial Performance and Valuation

When evaluating the financial health of these companies, key metrics include gross revenue, earnings per share (EPS), and price-to-earnings ratios. Workhorse Group reported a gross revenue of $6.62 million, with a price-to-sales ratio of 1.58. However, it posted a net income loss of $101.79 million and an EPS of -$85.96, resulting in a price-to-earnings ratio of -0.06. In contrast, Proliance International’s financial metrics, including gross revenue and net income, remain undisclosed. Despite this lack of revenue data, it is notable that Proliance International has recorded higher earnings than Workhorse Group, indicating its potential profitability.

Volatility and Risk Assessment

The volatility of these stocks reflects their risk profiles. Workhorse Group has a beta of 2.41, suggesting its stock price is 141% more volatile than the S&P 500. In comparison, Proliance International has an even higher beta of 3.84, indicating a volatility rate of 284% when compared to the same index. This significant difference in beta values suggests that investors in Proliance International may face greater fluctuations in stock price, potentially impacting decision-making for risk-averse investors.

Analyst recommendations provide further insight into the companies’ market perceptions. According to data from MarketBeat.com, Workhorse Group received 10 sell ratings and no buy ratings, resulting in a rating score of 1.00. In contrast, Proliance International has not received any ratings, leaving its potential upside largely unassessed. Nevertheless, the absence of negative ratings for Proliance International suggests analysts view it more favorably than Workhorse Group.

Profitability metrics further illustrate the differences between the two companies. Workhorse Group’s net margins stand at -606.64%, with a return on equity of -232.69% and a return on assets of -71.18%. Such negative figures highlight significant operational challenges. Proliance International, however, does not disclose these metrics, making it difficult to assess its profitability directly.

Institutional and insider ownership can also indicate market confidence. Approximately 16.0% of Workhorse Group shares are held by institutional investors, while only 1.9% are held by insiders. In comparison, Proliance International has 5.3% of its shares held by insiders, suggesting a more concentrated interest from company executives. Strong institutional ownership is often seen as a positive signal regarding a company’s long-term growth potential.

In summary, Proliance International outperforms Workhorse Group in several key areas, including earnings potential and analyst sentiment. With its higher earnings capability and stable insider ownership, Proliance may present a more attractive opportunity for investors compared to Workhorse.

About the Companies

Workhorse Group Inc. is a technology company engaged in the design, manufacture, and sale of zero-emission commercial vehicles in the United States. Founded in 2007 and headquartered in Sharonville, Ohio, the company was formerly known as AMP Holding Inc. and changed its name in April 2015 to its current title.

On the other hand, Proliance International, Inc. specializes in designing, manufacturing, and marketing heat exchange products and temperature control components for the automotive and light truck aftermarket. Established in 1915, Proliance offers a range of products including radiators and air conditioning parts, serving various markets across the United States, Canada, Mexico, Europe, and Central America. The company was previously known as Transpro, Inc. and adopted its current name in July 2005.

As investors consider their options in the automotive sector, understanding the nuances of each company’s financial and operational metrics will be crucial for informed decision-making.