Analyzing U Power (NASDAQ:UCAR) and Gentherm (NASDAQ:THRM)

U Power (NASDAQ:UCAR) and Gentherm (NASDAQ:THRM) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares U Power and Gentherm’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U Power	$2.78 million	1.19	-$2.72 million	N/A	N/A
Gentherm	$1.47 billion	1.11	$40.34 million	$1.46	35.50

Gentherm has higher revenue and earnings than U Power.

Profitability

This table compares U Power and Gentherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U Power	N/A	N/A	N/A
Gentherm	4.61%	14.03%	7.34%

Risk & Volatility

U Power has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

13.2% of U Power shares are owned by institutional investors. Comparatively, 97.1% of Gentherm shares are owned by institutional investors. 1.9% of Gentherm 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 Ratings

This is a breakdown of recent ratings and recommmendations for U Power and Gentherm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U Power	0	0	0	0	N/A
Gentherm	1	2	1	0	2.00

Gentherm has a consensus price target of $63.50, suggesting a potential upside of 22.52%. Given Gentherm’s higher possible upside, analysts plainly believe Gentherm is more favorable than U Power.

Summary

Gentherm beats U Power on 9 of the 11 factors compared between the two stocks.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.