Lion Electric (NYSE:LEV – 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 contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Earnings and Valuation
This table compares Lion Electric and Workhorse Group’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lion Electric | $253.50 million | 0.94 | -$103.77 million | ($0.49) | -2.14 |
| Workhorse Group | $13.10 million | 4.30 | -$123.92 million | ($0.54) | -0.28 |
Lion Electric has higher revenue and earnings than Workhorse Group. Lion Electric is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Lion Electric | -43.21% | -18.99% | -8.81% |
| Workhorse Group | -1,005.23% | -138.20% | -88.52% |
Institutional & Insider Ownership
52.7% of Lion Electric shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 16.6% of Lion Electric shares are owned by company insiders. Comparatively, 1.9% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Lion Electric has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Lion Electric and Workhorse Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lion Electric | 0 | 5 | 2 | 0 | 2.29 |
| Workhorse Group | 1 | 2 | 1 | 0 | 2.00 |
Lion Electric currently has a consensus target price of $1.74, suggesting a potential upside of 65.48%. Workhorse Group has a consensus target price of $1.50, suggesting a potential upside of 900.00%. Given Workhorse Group’s higher probable upside, analysts clearly believe Workhorse Group is more favorable than Lion Electric.
Summary
Lion Electric beats Workhorse Group on 10 of the 14 factors compared between the two stocks.
About Lion Electric
The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It distributes truck and bus parts, as well as accessories. The company was incorporated in 2008 and is based in Saint-Jérôme, Canada.
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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