Gentherm (NASDAQ:THRM – Get Free Report) and Workhorse Group (NASDAQ:WKHS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for Gentherm and Workhorse Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gentherm | 0 | 3 | 2 | 1 | 2.67 |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
Gentherm currently has a consensus price target of $43.00, indicating a potential upside of 20.55%. Given Gentherm’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gentherm is more favorable than Workhorse Group.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Gentherm | 2.08% | 9.55% | 4.80% |
| Workhorse Group | -606.64% | -232.69% | -71.18% |
Valuation & Earnings
This table compares Gentherm and Workhorse Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gentherm | $1.47 billion | 0.74 | $64.95 million | $1.00 | 35.67 |
| Workhorse Group | $6.62 million | 3.14 | -$101.79 million | ($7.16) | -0.12 |
Gentherm has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
97.1% of Gentherm shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 1.4% of Gentherm shares are owned by insiders. Comparatively, 1.9% of Workhorse Group shares are owned by 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.
Volatility & Risk
Gentherm has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.
Summary
Gentherm beats Workhorse Group on 12 of the 15 factors compared between the two stocks.
About Gentherm
Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.
About Workhorse Group
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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