China Zenix Auto International (OTCMKTS:ZXAIY – Get Free Report) and American Axle & Manufacturing (NYSE:DCH – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Volatility & Risk
China Zenix Auto International has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.
Valuation and Earnings
This table compares China Zenix Auto International and American Axle & Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Zenix Auto International | $271.18 million | 0.20 | -$61.16 million | ($2.23) | -0.46 |
| American Axle & Manufacturing | $5.84 billion | 0.23 | -$19.70 million | ($0.18) | -30.94 |
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.
Institutional & Insider 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares China Zenix Auto International and American Axle & Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Zenix Auto International | -41.87% | -40.07% | -24.13% |
| American Axle & Manufacturing | -0.34% | 10.00% | 1.17% |
Analyst Ratings
This is a breakdown of current ratings and target prices for China Zenix Auto International and American Axle & Manufacturing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Zenix Auto International | 0 | 0 | 0 | 0 | 0.00 |
| American Axle & Manufacturing | 2 | 3 | 6 | 0 | 2.36 |
American Axle & Manufacturing has a consensus target price of $10.12, indicating a potential upside of 81.71%. Given American Axle & Manufacturing’s stronger consensus rating and higher probable upside, analysts clearly believe American Axle & Manufacturing is more favorable than China Zenix Auto International.
Summary
American Axle & Manufacturing beats China Zenix Auto International on 12 of the 14 factors compared between the two stocks.
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.
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.
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