Harman International Industries (NYSE: HAR) and China XD Plastics Company Limited (NASDAQ:CXDC) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Harman International Industries and China XD Plastics Company Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harman International Industries 5.12% 15.69% 6.40%
China XD Plastics Company Limited 7.52% 16.31% 5.16%

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. China XD Plastics Company Limited does not pay a dividend. Harman International Industries pays out 27.6% of its earnings in the form of a dividend. Harman International Industries has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Harman International Industries and China XD Plastics Company Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harman International Industries 0 6 0 0 2.00
China XD Plastics Company Limited 0 0 0 0 N/A

Harman International Industries presently has a consensus price target of $107.25, suggesting a potential downside of 3.81%. Given Harman International Industries’ higher probable upside, equities analysts clearly believe Harman International Industries is more favorable than China XD Plastics Company Limited.

Insider & Institutional Ownership

85.8% of Harman International Industries shares are held by institutional investors. Comparatively, 11.4% of China XD Plastics Company Limited shares are held by institutional investors. 0.9% of Harman International Industries shares are held by insiders. Comparatively, 66.3% of China XD Plastics Company Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Harman International Industries has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, China XD Plastics Company Limited has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500.

Valuation & Earnings

This table compares Harman International Industries and China XD Plastics Company Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Harman International Industries N/A N/A N/A $5.07 21.99
China XD Plastics Company Limited $1.26 billion 0.18 $201.53 million $1.45 3.14

China XD Plastics Company Limited has higher revenue and earnings than Harman International Industries. China XD Plastics Company Limited is trading at a lower price-to-earnings ratio than Harman International Industries, indicating that it is currently the more affordable of the two stocks.

Harman International Industries Company Profile

Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.

China XD Plastics Company Limited Company Profile

China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).

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