Analyzing China Yuchai International (NYSE:CYD) and Solid Power (NASDAQ:SLDP)

China Yuchai International (NYSE:CYD) and Solid Power (NASDAQ:SLDP) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

33.7% of Solid Power shares are owned by institutional investors. 4.9% of Solid Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$2.66 billion	0.55	$45.03 million	$1.62	24.09
Solid Power	$20.14 million	38.88	-$96.52 million	($0.52)	-8.31

China Yuchai International has higher revenue and earnings than Solid Power. Solid Power is trading at a lower price-to-earnings ratio than China Yuchai International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

China Yuchai International has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for China Yuchai International and Solid Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	2	0	1	2.67
Solid Power	1	0	1	0	2.00

Solid Power has a consensus target price of $4.00, indicating a potential downside of 7.41%. Given Solid Power’s higher probable upside, analysts clearly believe Solid Power is more favorable than China Yuchai International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Yuchai International	N/A	N/A	N/A
Solid Power	-412.62%	-23.13%	-21.54%

Summary

China Yuchai International beats Solid Power on 9 of the 15 factors compared between the two stocks.

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.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.