Financial Analysis: Shanghai Industrial (OTCMKTS:SGHIY) vs. Addentax Group (NASDAQ:ATXG)

Addentax Group (NASDAQ:ATXG) and Shanghai Industrial (OTCMKTS:SGHIY) are both small-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Risk and Volatility

Addentax Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Profitability

This table compares Addentax Group and Shanghai Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Addentax Group	-182.28%	-17.86%	-10.90%
Shanghai Industrial	N/A	N/A	N/A

Institutional & Insider Ownership

10.1% of Addentax Group shares are held by institutional investors. 2.7% of Addentax Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Addentax Group and Shanghai Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addentax Group	1	0	0	0	1.00
Shanghai Industrial	0	0	0	0	0.00

Valuation and Earnings

This table compares Addentax Group and Shanghai Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addentax Group	$4.18 million	0.90	-$5.09 million	($0.85)	-0.38
Shanghai Industrial	$3.71 billion	0.50	$359.94 million	N/A	N/A

Shanghai Industrial has higher revenue and earnings than Addentax Group.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.