China Automotive Systems (NASDAQ:CAAS) and IOCHPE MAXION S/S (OTCMKTS:IOCJY) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Institutional & Insider Ownership
2.6% of China Automotive Systems shares are owned by institutional investors. 62.2% of China Automotive Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for China Automotive Systems and IOCHPE MAXION S/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Automotive Systems||0||0||1||0||3.00|
|IOCHPE MAXION S/S||0||0||0||0||N/A|
Risk and Volatility
China Automotive Systems has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, IOCHPE MAXION S/S has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
IOCHPE MAXION S/S pays an annual dividend of $0.05 per share and has a dividend yield of 2.7%. China Automotive Systems does not pay a dividend.
Valuation and Earnings
This table compares China Automotive Systems and IOCHPE MAXION S/S’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Automotive Systems||$496.16 million||0.18||$2.38 million||$0.08||35.63|
|IOCHPE MAXION S/S||$2.35 billion||0.35||$2.00 million||N/A||N/A|
China Automotive Systems has higher earnings, but lower revenue than IOCHPE MAXION S/S.
This table compares China Automotive Systems and IOCHPE MAXION S/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Automotive Systems||0.47%||0.75%||0.33%|
|IOCHPE MAXION S/S||1.38%||5.74%||1.91%|
China Automotive Systems Company Profile
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China. The company produces rack and pinion power steering gears for cars and light duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic systems and parts. It is also involved in the marketing of automotive parts in North America and Brazil, as well as the provision of after sales, and research and development support services. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Wuhan City, the People's Republic of China.
IOCHPE MAXION S/S Company Profile
Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for light and commercial vehicles in North America, South America, Europe, and internationally. It operates through two segments, Wheels and Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-up trucks, and SUVs, as well as light and medium-sized commercial vehicles; and light aluminum wheels for vehicles. It also provides heavy structural components, including frames, sidebars, and crossbars; and metal stampings for commercial vehicles, as well as agricultural machinery and aluminum wheels for light vehicles. In addition, the company offers light structural and automotive components, such as metal stampings for passenger vehicles, brake levers, pedal sets, welded assemblies, structural parts, and other automotive components. Further, it produces freight cars, railway wheels, and castings, as well as industrial castings and freight cars. Iochpe-Maxion S.A. was founded in 1918 and is headquartered in Cruzeiro, Brazil.
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