China Yuchai International (NYSE:CYD) & Adient (NYSE:ADNT) Financial Review

Adient (NYSE:ADNT) and China Yuchai International (NYSE:CYD) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

92.4% of Adient shares are held by institutional investors. 0.9% of Adient shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adient	-2.06%	8.18%	1.89%
China Yuchai International	N/A	N/A	N/A

Earnings & Valuation

This table compares Adient and China Yuchai International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adient	$14.54 billion	0.14	-$281.00 million	($3.62)	-7.17
China Yuchai International	$2.66 billion	0.69	$45.03 million	N/A	N/A

China Yuchai International has lower revenue, but higher earnings than Adient.

Risk and Volatility

Adient has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Adient and China Yuchai International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adient	2	6	4	0	2.17
China Yuchai International	0	3	0	1	2.50

Adient presently has a consensus price target of $27.44, suggesting a potential upside of 5.80%. China Yuchai International has a consensus price target of $60.00, suggesting a potential upside of 22.22%. Given China Yuchai International’s stronger consensus rating and higher possible upside, analysts plainly believe China Yuchai International is more favorable than Adient.

Summary

Adient beats China Yuchai International on 7 of the 13 factors compared between the two stocks.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

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.