Gentherm (NASDAQ: THRM) and China XD Plastics Company Limited (NASDAQ:CXDC) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Gentherm and China XD Plastics Company Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 3 4 0 2.57
China XD Plastics Company Limited 0 0 0 0 N/A

Gentherm currently has a consensus target price of $40.43, indicating a potential upside of 21.41%. Given Gentherm’s higher probable upside, analysts clearly believe Gentherm is more favorable than China XD Plastics Company Limited.

Profitability

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

Net Margins Return on Equity Return on Assets
Gentherm 6.89% 12.82% 7.68%
China XD Plastics Company Limited 7.52% 16.31% 5.16%

Volatility & Risk

Gentherm has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, China XD Plastics Company Limited has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gentherm and China XD Plastics Company Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gentherm $917.60 million 1.33 $76.59 million $1.81 18.40
China XD Plastics Company Limited $1.20 billion 0.20 $101.61 million $1.45 3.38

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

Insider and Institutional Ownership

96.6% of Gentherm shares are owned by institutional investors. Comparatively, 11.4% of China XD Plastics Company Limited shares are owned by institutional investors. 2.3% of Gentherm shares are owned by company insiders. Comparatively, 66.3% of China XD Plastics Company Limited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Gentherm beats China XD Plastics Company Limited on 7 of the 13 factors compared between the two stocks.

Gentherm Company Profile

Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.

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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