Critical Comparison: China Automotive Systems (CAAS) vs. ZF TRW Automotive Holdings Corp (TRW)
China Automotive Systems (NASDAQ: CAAS) and ZF TRW Automotive Holdings Corp (NYSE:TRW) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitabiliy, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
5.2% 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares China Automotive Systems and ZF TRW Automotive Holdings Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Automotive Systems||$464.50 million||0.32||$37.50 million||$0.71||6.63|
|ZF TRW Automotive Holdings Corp||N/A||N/A||N/A||N/A||N/A|
China Automotive Systems has higher revenue and earnings than ZF TRW Automotive Holdings Corp.
This table compares China Automotive Systems and ZF TRW Automotive Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Automotive Systems||4.86%||7.27%||3.57%|
|ZF TRW Automotive Holdings Corp||9.10%||37.00%||13.40%|
This is a breakdown of current ratings and recommmendations for China Automotive Systems and ZF TRW Automotive Holdings Corp, 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|
|ZF TRW Automotive Holdings Corp||0||0||0||0||N/A|
China Automotive Systems presently has a consensus price target of $7.50, suggesting a potential upside of 59.24%. Given China Automotive Systems’ higher probable upside, equities analysts clearly believe China Automotive Systems is more favorable than ZF TRW Automotive Holdings Corp.
China Automotive Systems beats ZF TRW Automotive Holdings Corp on 5 of the 8 factors compared between the two stocks.
China Automotive Systems Company Profile
China Automotive Systems, Inc., (China Automotive) is a holding company. The Company, through its subsidiary, Great Genesis Holdings Limited (Genesis), owns interests in over eight Sino-joint ventures and over five subsidiaries in the People’s Republic of China (PRC), which manufacture power steering systems and/or related products for various segments of the automobile industry. Genesis also owns interests in a Brazil-based trading company, which engages mainly in the import and sales of automotive parts in Brazil. Henglong USA Corporation (HLUSA), which is a subsidiary of the Company, engages in marketing of automotive parts in North America, and provides after sales service and research and development support. The Company’s geographical segments include the United States, China and other foreign countries. One of its subsidiaries, Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., focuses on power steering parts for light duty vehicles.
ZF TRW Automotive Holdings Corp Company Profile
TRW Automotive Holdings Corp. (TRW Automotive) is a supplier of automotive systems, modules and components to global automotive original equipment manufacturers (OEMs) and related aftermarkets. The Company operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. The Company’s operations encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems refer to vehicle dynamic controls (braking and steering) and electronics (driver assistance systems), and passive safety related products and systems refer to occupant restraints (airbags and seat belts) and electronics (airbag electronic control units, and crash and occupant weight sensors). It sells its Chassis Systems products and systems primarily to OEMs and other Tier 1 suppliers. It sells its products to the aftermarket through both OEM service organizations and independent distribution networks.
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