Comparing China Yuchai International (NYSE:CYD) and Wabash National (NYSE:WNC)

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

Institutional & Insider Ownership

97.1% of Wabash National shares are held by institutional investors. 2.2% of Wabash National shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Wabash National and China Yuchai International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabash National	$1.64 billion	0.19	-$284.07 million	$6.08	1.29
China Yuchai International	$22.63 billion	0.07	$45.03 million	N/A	N/A

China Yuchai International has higher revenue and earnings than Wabash National.

Risk & Volatility

Wabash National has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wabash National	-6.38%	-7.91%	-1.65%
China Yuchai International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Wabash National and China Yuchai International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabash National	1	2	0	0	1.67
China Yuchai International	0	3	0	0	2.00

Wabash National currently has a consensus price target of $9.00, suggesting a potential upside of 14.72%. Given Wabash National’s higher probable upside, research analysts clearly believe Wabash National is more favorable than China Yuchai International.

Dividends

Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 4.1%. China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.3%. Wabash National pays out 5.3% of its earnings in the form of a dividend. China Yuchai International has raised its dividend for 1 consecutive years.

Summary

China Yuchai International beats Wabash National on 8 of the 14 factors compared between the two stocks.

About Wabash National

Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

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.