Contrasting China Yuchai International (NYSE:CYD) & Iochpe-Maxion (OTCMKTS:IOCJY)

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

Dividends

Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.9%. China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.3%. Iochpe-Maxion pays out 33.3% of its earnings in the form of a dividend. China Yuchai International has raised its dividend for 1 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	17.64
China Yuchai International	$3.51 billion	0.45	$76.46 million	N/A	N/A

China Yuchai International has higher revenue and earnings than Iochpe-Maxion.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Iochpe-Maxion and China Yuchai International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iochpe-Maxion	0	1	0	0	2.00
China Yuchai International	0	2	0	1	2.67

China Yuchai International has a consensus price target of $60.00, suggesting a potential upside of 42.68%. Given China Yuchai International’s stronger consensus rating and higher probable upside, analysts plainly believe China Yuchai International is more favorable than Iochpe-Maxion.

Risk and Volatility

Iochpe-Maxion has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iochpe-Maxion	0.63%	2.04%	0.66%
China Yuchai International	N/A	N/A	N/A

Summary

China Yuchai International beats Iochpe-Maxion on 9 of the 13 factors compared between the two stocks.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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.