Head to Head Analysis: China Yuchai International (NYSE:CYD) and SES AI (NYSE:SES)

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

Profitability

This table compares SES AI and China Yuchai International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SES AI	-347.81%	-28.19%	-23.42%
China Yuchai International	N/A	N/A	N/A

Insider and Institutional Ownership

29.8% of SES AI shares are held by institutional investors. 13.8% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SES AI and China Yuchai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	0	1	0	2.00
China Yuchai International	0	1	0	2	3.33

SES AI currently has a consensus price target of $4.00, indicating a potential upside of 314.08%. China Yuchai International has a consensus price target of $60.00, indicating a potential upside of 57.42%. Given SES AI’s higher possible upside, equities analysts clearly believe SES AI is more favorable than China Yuchai International.

Earnings & Valuation

This table compares SES AI and China Yuchai International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$21.00 million	16.86	-$73.04 million	($0.22)	-4.39
China Yuchai International	$3.51 billion	0.41	$76.46 million	N/A	N/A

China Yuchai International has higher revenue and earnings than SES AI.

Volatility & Risk

SES AI has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

China Yuchai International beats SES AI on 8 of the 13 factors compared between the two stocks.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.

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.