Worksport (NASDAQ:WKSP – Get Free Report) and LCI Industries (NYSE:LCII – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Worksport has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Profitability
This table compares Worksport and LCI Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Worksport | -751.91% | -82.97% | -57.68% |
| LCI Industries | 2.47% | 6.85% | 3.10% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Worksport | 0 | 0 | 0 | 0 | N/A |
| LCI Industries | 2 | 3 | 2 | 0 | 2.00 |
LCI Industries has a consensus target price of $109.00, indicating a potential downside of 3.44%. Given LCI Industries’ higher possible upside, analysts plainly believe LCI Industries is more favorable than Worksport.
Earnings and Valuation
This table compares Worksport and LCI Industries’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worksport | $1.53 million | 12.35 | -$14.93 million | ($0.82) | -0.81 |
| LCI Industries | $3.78 billion | 0.76 | $64.19 million | $3.68 | 30.67 |
LCI Industries has higher revenue and earnings than Worksport. Worksport is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
16.1% of Worksport shares are owned by institutional investors. Comparatively, 99.7% of LCI Industries shares are owned by institutional investors. 10.1% of Worksport shares are owned by insiders. Comparatively, 3.5% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
LCI Industries beats Worksport on 11 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 LCI Industries
LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates through two segments: Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles, ABS, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct to retail customers through the Internet. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1956 and is based in Elkhart, Indiana.
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