Reviewing ChargePoint (NYSE:CHPT) and WeRide (NASDAQ:WRD)

ChargePoint (NYSE:CHPT) and WeRide (NASDAQ:WRD) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for ChargePoint and WeRide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	3	6	1	0	1.80
WeRide	1	1	7	0	2.67

ChargePoint presently has a consensus target price of $8.63, suggesting a potential upside of 22.92%. WeRide has a consensus target price of $12.48, suggesting a potential upside of 70.07%. Given WeRide’s stronger consensus rating and higher possible upside, analysts clearly believe WeRide is more favorable than ChargePoint.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-53.55%	-276.06%	-20.17%
WeRide	-228.47%	-24.18%	-21.45%

Risk and Volatility

ChargePoint has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Earnings & Valuation

This table compares ChargePoint and WeRide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$411.22 million	0.40	-$220.20 million	($9.33)	-0.75
WeRide	$97.89 million	23.70	-$230.20 million	($0.75)	-9.79

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

Institutional and Insider Ownership

37.8% of ChargePoint shares are owned by institutional investors. 3.5% of ChargePoint shares are owned by company insiders. Comparatively, 2.7% of WeRide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

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.