Comparing Harley-Davidson (NYSE:HOG) and Workhorse Group (NASDAQ:WKHS)

Harley-Davidson (NYSE:HOG) and Workhorse Group (NASDAQ:WKHS) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares Harley-Davidson and Workhorse Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harley-Davidson	$4.24 billion	0.69	$338.74 million	$1.63	17.36
Workhorse Group	$21.21 million	1.59	-$64.09 million	($12.31)	-0.25

Harley-Davidson has higher revenue and earnings than Workhorse Group. Workhorse Group is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Harley-Davidson has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500.

Profitability

This table compares Harley-Davidson and Workhorse Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harley-Davidson	4.78%	6.28%	2.45%
Workhorse Group	-357.61%	-311.04%	-75.40%

Institutional and Insider Ownership

85.1% of Harley-Davidson shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 1.0% of Harley-Davidson shares are owned by insiders. Comparatively, 0.0% of Workhorse Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Harley-Davidson and Workhorse Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harley-Davidson	2	5	4	1	2.33
Workhorse Group	1	0	0	0	1.00

Harley-Davidson currently has a consensus price target of $27.00, indicating a potential downside of 4.56%. Given Harley-Davidson’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Harley-Davidson is more favorable than Workhorse Group.

Summary

Harley-Davidson beats Workhorse Group on 13 of the 15 factors compared between the two stocks.

About Harley-Davidson

Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.

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.