PHINIA (NYSE:PHIN) vs. China Yuchai International (NYSE:CYD) Head to Head Analysis

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

Dividends

PHINIA pays an annual dividend of $1.08 per share and has a dividend yield of 2.0%. China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.3%. PHINIA pays out 41.7% of its earnings in the form of a dividend. China Yuchai International pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PHINIA has increased its dividend for 2 consecutive years and China Yuchai International has increased its dividend for 1 consecutive years. PHINIA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares PHINIA and China Yuchai International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PHINIA	$3.40 billion	0.62	$79.00 million	$2.59	20.93
China Yuchai International	$2.66 billion	0.55	$45.03 million	$1.62	24.29

PHINIA has higher revenue and earnings than China Yuchai International. PHINIA 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PHINIA	3.22%	10.74%	4.48%
China Yuchai International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for PHINIA and China Yuchai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHINIA	0	4	3	1	2.63
China Yuchai International	0	2	0	1	2.67

PHINIA currently has a consensus target price of $55.83, suggesting a potential upside of 3.02%. Given PHINIA’s higher possible upside, equities analysts clearly believe PHINIA is more favorable than China Yuchai International.

Volatility and Risk

PHINIA has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

90.9% of PHINIA shares are owned by institutional investors. 2.0% of PHINIA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

PHINIA beats China Yuchai International on 14 of the 17 factors compared between the two stocks.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.

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.