Analyzing Lear (NYSE:LEA) & Worksport (NASDAQ:WKSP)

Worksport (NASDAQ:WKSP) and Lear (NYSE:LEA) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Worksport and Lear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worksport	1	1	0	0	1.50
Lear	0	12	3	1	2.31

Worksport presently has a consensus target price of $2.00, indicating a potential upside of 566.67%. Lear has a consensus target price of $143.25, indicating a potential upside of 22.34%. Given Worksport’s higher probable upside, analysts clearly believe Worksport is more favorable than Lear.

Volatility & Risk

Worksport has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Lear has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

16.1% of Worksport shares are owned by institutional investors. Comparatively, 97.0% of Lear shares are owned by institutional investors. 5.8% of Worksport shares are owned by insiders. Comparatively, 1.0% of Lear shares are owned by 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.

Valuation & Earnings

This table compares Worksport and Lear”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worksport	$16.10 million	0.37	-$19.35 million	($2.34)	-0.13
Lear	$23.26 billion	0.24	$436.80 million	$11.45	10.23

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

Profitability

This table compares Worksport and Lear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worksport	-114.49%	-102.57%	-73.69%
Lear	2.46%	14.92%	5.10%

Summary

Lear beats Worksport on 11 of the 14 factors compared between the two stocks.

About Worksport

Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.