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

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

Volatility and Risk

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

Profitability

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

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

Analyst Ratings

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

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

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

Valuation and Earnings

This table compares Gentherm and U Power’s top-line revenue, earnings per share (EPS) and valuation.

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

Gentherm has higher revenue and earnings than U Power.

Insider & Institutional Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 13.2% of U Power shares are held by institutional investors. 1.9% of Gentherm shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.