Reviewing China Yuchai International (NYSE:CYD) and SES AI (NYSE:SES)

China Yuchai International (NYSE:CYD) and SES AI (NYSE:SES) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

China Yuchai International has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares China Yuchai International and SES AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$3.51 billion	0.40	$76.46 million	N/A	N/A
SES AI	$21.00 million	17.25	-$73.04 million	($0.22)	-4.49

China Yuchai International has higher revenue and earnings than SES AI.

Insider and Institutional Ownership

29.8% of SES AI shares are owned by institutional investors. 13.8% of SES AI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares China Yuchai International and SES AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Yuchai International	N/A	N/A	N/A
SES AI	-347.81%	-28.19%	-23.42%

Analyst Ratings

This is a summary of current recommendations for China Yuchai International and SES AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	1	0	2	3.33
SES AI	1	0	1	0	2.00

China Yuchai International currently has a consensus target price of $60.00, indicating a potential upside of 61.33%. SES AI has a consensus target price of $4.00, indicating a potential upside of 304.86%. Given SES AI’s higher possible upside, analysts clearly believe SES AI is more favorable than China Yuchai International.

Summary

China Yuchai International beats SES AI on 8 of the 13 factors compared between the two stocks.

About China Yuchai International

China Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines for trucks, buses and passenger vehicles, marine, industrial, construction, agriculture, and generator set applications in the People’s Republic of China and internationally. It operates through two segments, Yuchai and HLGE. The Yuchai segment manufactures on- and off-road powertrain solutions and applications. The HLGE is engaged in hospitality and property development activities. The company provides diesel engines comprising 4- and 6-cylinder diesel engines, high horsepower marine diesel engines, and power generator engines; natural gas engines, methanol combustion engines, diesel power generators, diesel engine parts, and remanufacturing services; as well as plug in hybrid engines, range extenders, power generation powertrains, hybrid powertrains, integrated electric drive axel powertrains, and fuel cell systems. It also offers maintenance and retrofitting services. It distributes its engines directly to auto original equipment manufacturers, agents, and retailers. The company was founded in 1951 and is based in Singapore.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.