Comparing Worksport (NASDAQ:WKSP) & American Axle & Manufacturing (NYSE:AXL)

Worksport (NASDAQ:WKSP) and American Axle & Manufacturing (NYSE:AXL) are both small-cap consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Valuation & Earnings

This table compares Worksport and American Axle & Manufacturing’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worksport	$1.53 million	9.86	-$14.93 million	($0.82)	-0.72
American Axle & Manufacturing	$6.19 billion	0.14	-$33.60 million	($0.07)	-105.86

Worksport has higher earnings, but lower revenue than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Worksport, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Worksport has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Profitability

This table compares Worksport and American Axle & Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worksport	-751.91%	-82.97%	-57.68%
American Axle & Manufacturing	-0.13%	1.92%	0.22%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Worksport and American Axle & Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worksport	0	0	0	0	N/A
American Axle & Manufacturing	1	3	1	0	2.00

American Axle & Manufacturing has a consensus target price of $8.00, suggesting a potential upside of 7.96%. Given American Axle & Manufacturing’s higher probable upside, analysts plainly believe American Axle & Manufacturing is more favorable than Worksport.

Institutional & Insider Ownership

16.1% of Worksport shares are held by institutional investors. Comparatively, 91.4% of American Axle & Manufacturing shares are held by institutional investors. 11.7% of Worksport shares are held by insiders. Comparatively, 3.1% of American Axle & Manufacturing shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

American Axle & Manufacturing beats Worksport on 9 of the 13 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 American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. It operates through two segments, Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides range of products, such as engine, transmission, driveline, and safety-critical components for traditional internal combustion engine and electric vehicle architectures, including light vehicles, commercial vehicles, and off-highway vehicles, as well as products for industrial markets. It operates in North America, Asia, Europe, and South America. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.