Analyzing China Yuchai International (NYSE:CYD) & LCI Industries (NYSE:LCII)

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

Institutional and Insider Ownership

99.7% of LCI Industries shares are owned by institutional investors. 3.5% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.6%. LCI Industries pays an annual dividend of $4.60 per share and has a dividend yield of 4.3%. LCI Industries pays out 64.3% of its earnings in the form of a dividend. China Yuchai International has increased its dividend for 1 consecutive years and LCI Industries has increased its dividend for 8 consecutive years. LCI Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

China Yuchai International has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for China Yuchai International and LCI Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	3	0	0	2.00
LCI Industries	0	6	2	1	2.44

LCI Industries has a consensus target price of $113.67, suggesting a potential upside of 6.91%. Given LCI Industries’ stronger consensus rating and higher possible upside, analysts clearly believe LCI Industries is more favorable than China Yuchai International.

Profitability

This table compares China Yuchai International and LCI Industries’ 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
LCI Industries	3.93%	11.57%	5.27%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$22.63 billion	0.06	$45.03 million	N/A	N/A
LCI Industries	$3.99 billion	0.64	$142.87 million	$7.15	14.87

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

Summary

LCI Industries beats China Yuchai International on 14 of the 16 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 LCI Industries

LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates through two segments: Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles, ABS, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct to retail customers through the Internet. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1956 and is based in Elkhart, Indiana.