Comparing Hollysys Automation Technologies (HOLI) and China Carbon Graphite Group (CHGI)

Hollysys Automation Technologies (NASDAQ:HOLI) and China Carbon Graphite Group (OTCMKTS:CHGI) are both small-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Dividends

Hollysys Automation Technologies pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. China Carbon Graphite Group does not pay a dividend. Hollysys Automation Technologies pays out 10.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

70.3% of Hollysys Automation Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Hollysys Automation Technologies and China Carbon Graphite Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hollysys Automation Technologies $540.77 million 2.14 $107.16 million $1.78 10.76
China Carbon Graphite Group $990,000.00 0.83 -$250,000.00 N/A N/A

Hollysys Automation Technologies has higher revenue and earnings than China Carbon Graphite Group.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hollysys Automation Technologies and China Carbon Graphite Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hollysys Automation Technologies 0 1 1 0 2.50
China Carbon Graphite Group 0 0 0 0 N/A

Hollysys Automation Technologies currently has a consensus target price of $25.00, indicating a potential upside of 30.48%. Given Hollysys Automation Technologies’ higher probable upside, analysts clearly believe Hollysys Automation Technologies is more favorable than China Carbon Graphite Group.

Profitability

This table compares Hollysys Automation Technologies and China Carbon Graphite Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hollysys Automation Technologies 19.82% 13.36% 9.18%
China Carbon Graphite Group -20.17% N/A -129.26%

Volatility and Risk

Hollysys Automation Technologies has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -3.24, indicating that its share price is 424% less volatile than the S&P 500.

Summary

Hollysys Automation Technologies beats China Carbon Graphite Group on 11 of the 12 factors compared between the two stocks.

About Hollysys Automation Technologies

Hollysys Automation Technologies Ltd. provides automation and control technologies and products in the People's Republic of China, Southeast Asia, India, and the Middle East. The company offers a suite of industrial automation systems, including third-party hardware-centric products, such as instrumentation and actuators; proprietary software-centric distributed control systems/programmable logic controllers; and valued-added software packages comprising real-time management information system, HolliAS asset management system, operator training system, HolliAS batch application package, HolliAS advanced process control package, and safety instrumentation system, as well as HOLLiAS-NMS DCS, a proprietary nuclear power non-safety automation and control system. It also provides train control center that monitors route condition, track status, train schedules, distance between trains, and the working status of other function devices, as well as generates control instructions and commands. In addition, the company offers automation train protection that operates as a train over-speed protection mechanism; supervisory control and data acquisition system, an open software platform; and subway supervisory and control platform data acquisition product, as well as automatic train protection and other products. Further, it engages in research and development activities; and provides integrated automation systems and services, mechanical and electrical solution services, and installation services. The company serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries. The company was formerly known as HLS Systems International Ltd. and changed its name to Hollysys Automation Technologies Ltd. in July 2009. Hollysys Automation Technologies Ltd. was founded in 1993 and is headquartered in Beijing, the People's Republic China.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, and sale of graphene, graphene oxide, and graphite bipolar plates in the People's Republic of China and internationally. The company's graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. It operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. The company also supplies special graphite blocks and rods, graphite electrodes, precision machined graphite parts and components, and carbon fiber felts. In addition, it offers products for end-users in graphite application zones, including steel, metallurgy, non-ferrous, PV, energy storage, optical fiber, semiconductor, and chemical industries. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.

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