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

Profitability

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

Net Margins Return on Equity Return on Assets
China Automotive Systems N/A N/A N/A
Visteon -1.56% 6.97% 1.56%

Risk & Volatility

China Automotive Systems has a beta of 3.28, indicating that its share price is 228% more volatile than the S&P 500. Comparatively, Visteon has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Automotive Systems $431.43 million 0.35 $9.96 million $0.32 15.16
Visteon $2.95 billion 1.17 $70.00 million $2.77 44.55

Visteon has higher revenue and earnings than China Automotive Systems. China Automotive Systems is trading at a lower price-to-earnings ratio than Visteon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for China Automotive Systems and Visteon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Automotive Systems 0 1 0 0 2.00
Visteon 3 3 5 0 2.18

China Automotive Systems currently has a consensus price target of $5.00, indicating a potential upside of 3.09%. Visteon has a consensus price target of $109.89, indicating a potential downside of 10.95%. Given China Automotive Systems’ higher probable upside, analysts clearly believe China Automotive Systems is more favorable than Visteon.

Institutional and Insider Ownership

3.1% of China Automotive Systems shares are owned by institutional investors. 63.3% of China Automotive Systems shares are owned by insiders. Comparatively, 1.3% of Visteon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Visteon beats China Automotive Systems on 8 of the 14 factors compared between the two stocks.

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 and hydraulic power steering 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. is headquartered in Jingzhou City, the People's Republic of China.

Visteon Company Profile

Visteon Corporation engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including standard analog gauge clusters to high-resolution, all-digital, fully reconfigurable, 2-D, and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, dual view, cameras, optics, haptic feedback, light effects, and dual displays; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence based voice assistant. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data, as well as hands-free telephone unit; and head-up displays (HUD), such as combiner HUD and windshield HUD that present critical information to the driver. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller to enhance efficiency, and reduce power consumption and cost; and DriveCore, a platform for addressing multiple levels of vehicle automation. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.

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