Superior Industries International (NYSE: SUP) and China XD Plastics (NASDAQ:CXDC) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
Risk and Volatility
Superior Industries International has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, China XD Plastics has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.
This table compares Superior Industries International and China XD Plastics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||0.66%||7.96%||3.32%|
|China XD Plastics||7.16%||13.19%||4.01%|
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. China XD Plastics does not pay a dividend. Superior Industries International pays out -180.0% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Superior Industries International and China XD Plastics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$732.70 million||0.54||$41.38 million||($0.20)||-79.75|
|China XD Plastics||$1.20 billion||0.19||$101.61 million||$1.35||3.41|
China XD Plastics has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than China XD Plastics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Superior Industries International and China XD Plastics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
|China XD Plastics||0||0||0||0||N/A|
Superior Industries International currently has a consensus price target of $22.67, indicating a potential upside of 42.11%. Given Superior Industries International’s higher probable upside, research analysts clearly believe Superior Industries International is more favorable than China XD Plastics.
Insider & Institutional Ownership
84.2% of Superior Industries International shares are held by institutional investors. Comparatively, 11.2% of China XD Plastics shares are held by institutional investors. 1.5% of Superior Industries International shares are held by company insiders. Comparatively, 66.4% of China XD Plastics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
China XD Plastics beats Superior Industries International on 9 of the 15 factors compared between the two stocks.
About Superior Industries International
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
About China XD Plastics
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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