Reviewing AB Volvo (OTCMKTS:VLVLY) & WeRide (NASDAQ:WRD)

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

Analyst Ratings

This is a summary of current ratings for AB Volvo and WeRide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	2	2.33
WeRide	1	1	7	0	2.67

WeRide has a consensus price target of $12.48, indicating a potential upside of 63.29%. Given WeRide’s stronger consensus rating and higher probable upside, analysts plainly believe WeRide is more favorable than AB Volvo.

Insider and Institutional Ownership

0.0% of AB Volvo shares are held by institutional investors. 2.7% of WeRide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares AB Volvo and WeRide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.41	$3.52 billion	$2.03	16.75
WeRide	$97.89 million	24.76	-$230.20 million	($0.75)	-10.19

AB Volvo has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.32%	23.35%	5.99%
WeRide	-240.54%	-24.38%	-21.89%

Volatility and Risk

AB Volvo has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Summary

AB Volvo beats WeRide on 9 of the 15 factors compared between the two stocks.

About AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

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.