Reviewing Envirotech Vehicles (NASDAQ:EVTV) and China Zenix Auto International (OTCMKTS:ZXAIY)

China Zenix Auto International (OTCMKTS:ZXAIY – Get Rating) and Envirotech Vehicles (NASDAQ:EVTV – Get Rating) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

5.2% of Envirotech Vehicles shares are held by institutional investors. 5.8% of Envirotech Vehicles shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for China Zenix Auto International and Envirotech Vehicles, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Zenix Auto International	0	0	0	0	N/A
Envirotech Vehicles	0	0	0	0	N/A

Earnings and Valuation

This table compares China Zenix Auto International and Envirotech Vehicles’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Zenix Auto International	$271.18 million	0.20	-$61.16 million	($2.23)	-0.46
Envirotech Vehicles	$2.04 million	28.24	-$7.65 million	($0.46)	-8.35

Envirotech Vehicles has lower revenue, but higher earnings than China Zenix Auto International. Envirotech Vehicles is trading at a lower price-to-earnings ratio than China Zenix Auto International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares China Zenix Auto International and Envirotech Vehicles’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Zenix Auto International	-41.87%	-40.07%	-24.13%
Envirotech Vehicles	-100.18%	-10.66%	-10.49%

Risk and Volatility

China Zenix Auto International has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Envirotech Vehicles has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500.

Summary

Envirotech Vehicles beats China Zenix Auto International on 8 of the 11 factors compared between the two stocks.

About China Zenix Auto International

(Get Rating)

China Zenix Auto International Ltd. engages in the design, manufacture, and sale of steel wheels for commercial vehicles. It operates through the following segments: PRC Aftermarket Sales, PRC OEM Sales, and International Sales. The PRC Aftermarket Sales segment produces and sells steel and aluminum wheels to distributors. The PRC OEM Sales segment produces and sells steel and aluminum wheels to vehicle manufacturers. The International Sales segment manufactures wheels to distributors and vehicle manufacturers outside China. The company was founded on July 11, 2008 and is headquartered in Zhangzhou, China.

About Envirotech Vehicles

(Get Rating)

Envirotech Vehicles is a provider and manufacturer of purpose-built, all-electric, zero-emission vehicles and zero-emission drive trains for integration in medium to heavy-duty commercial fleet vehicles. The company serves commercial and last-mile delivery fleets, school districts, public and private transportation service companies, colleges, and universities and meet the increasing demand for heavy-duty electric vehicles. The company was founded by Edward Riggs Monfort on August 6, 2012 and is headquartered in Osceloa, AR.