Analyzing China Automotive Systems (NASDAQ:CAAS) & Dongfeng Motor Group (NASDAQ:DNFGY)

China Automotive Systems (NASDAQ:CAAS) and Dongfeng Motor Group (OTCMKTS:DNFGY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

2.6% of China Automotive Systems shares are held by institutional investors. Comparatively, 0.0% of Dongfeng Motor Group shares are held by institutional investors. 62.2% of China Automotive Systems shares are held by 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.

Earnings & Valuation

This table compares China Automotive Systems and Dongfeng Motor Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Automotive Systems $496.16 million 0.13 $2.38 million $0.08 24.88
Dongfeng Motor Group $18.50 billion 0.38 $2.08 billion N/A N/A

Dongfeng Motor Group has higher revenue and earnings than China Automotive Systems.

Volatility & Risk

China Automotive Systems has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Dongfeng Motor Group has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares China Automotive Systems and Dongfeng Motor Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Automotive Systems 0.26% 0.37% 0.17%
Dongfeng Motor Group N/A N/A N/A

Dividends

Dongfeng Motor Group pays an annual dividend of $3.15 per share and has a dividend yield of 7.8%. China Automotive Systems does not pay a dividend.

Analyst Recommendations

This is a summary of current recommendations for China Automotive Systems and Dongfeng Motor Group, 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
Dongfeng Motor Group 0 1 1 0 2.50

Summary

China Automotive Systems beats Dongfeng Motor Group on 7 of the 11 factors compared between the two stocks.

About China Automotive Systems

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.

About Dongfeng Motor Group

Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and auto engines and parts in the People's Republic of China. The company operates through four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. It provides commercial vehicles, including trucks and buses; passenger vehicles comprising basic passenger cars, MPVs, and SUVs; and electric vehicles, off-road vehicles, and special commercial vehicles. The company also engages in other automotive-related businesses, including the manufacture of vehicle manufacturing equipment; and provision of financial services. In addition, it is involved in the marketing and sale of automobiles; and key assembly other automotive-related businesses. The company was founded in 1969 and is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited is a subsidiary of Dongfeng Motor Corporation.

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