American Axle & Manufacturing (NYSE:DCH – Get Free Report) and China Zenix Auto International (OTCMKTS:ZXAIY – Get Free Report) 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, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
91.4% of American Axle & Manufacturing shares are held by institutional investors. 3.7% of American Axle & Manufacturing shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations for American Axle & Manufacturing and China Zenix Auto International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 2 | 3 | 6 | 0 | 2.36 |
| China Zenix Auto International | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares American Axle & Manufacturing and China Zenix Auto International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | -0.34% | 10.00% | 1.17% |
| China Zenix Auto International | -41.87% | -40.07% | -24.13% |
Risk and Volatility
American Axle & Manufacturing has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, China Zenix Auto International has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.
Earnings & Valuation
This table compares American Axle & Manufacturing and China Zenix Auto International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $5.84 billion | 0.23 | -$19.70 million | ($0.18) | -30.94 |
| China Zenix Auto International | $271.18 million | 0.20 | -$61.16 million | ($2.23) | -0.46 |
American Axle & Manufacturing has higher revenue and earnings than China Zenix Auto International. American Axle & Manufacturing 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.
Summary
American Axle & Manufacturing beats China Zenix Auto International on 12 of the 14 factors compared between the two stocks.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994, and is headquartered in Detroit, MI.
About China Zenix Auto International
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.
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