China Automotive Systems (NASDAQ:CAAS) and Standard Motor Products (NYSE:SMP) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This is a breakdown of recent recommendations for China Automotive Systems and Standard Motor Products, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Automotive Systems||0||0||0||0||N/A|
|Standard Motor Products||0||1||0||0||2.00|
Earnings and Valuation
This table compares China Automotive Systems and Standard Motor Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Automotive Systems||$499.06 million||0.17||-$19.34 million||$0.64||4.22|
|Standard Motor Products||$1.12 billion||1.00||$37.97 million||$2.83||17.56|
Standard Motor Products has higher revenue and earnings than China Automotive Systems. China Automotive Systems is trading at a lower price-to-earnings ratio than Standard Motor Products, indicating that it is currently the more affordable of the two stocks.
This table compares China Automotive Systems and Standard Motor Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Automotive Systems||-6.49%||1.97%||0.87%|
|Standard Motor Products||2.86%||12.78%||7.11%|
Institutional & Insider Ownership
2.7% of China Automotive Systems shares are held by institutional investors. Comparatively, 81.3% of Standard Motor Products shares are held by institutional investors. 62.2% of China Automotive Systems shares are held by insiders. Comparatively, 6.4% of Standard Motor Products 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.
Standard Motor Products pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. China Automotive Systems does not pay a dividend. Standard Motor Products pays out 29.7% of its earnings in the form of a dividend. Standard Motor Products has increased its dividend for 8 consecutive years.
Risk & Volatility
China Automotive Systems has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Standard Motor Products has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Standard Motor Products beats China Automotive Systems on 11 of the 14 factors compared between the two stocks.
China Automotive Systems Company Profile
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China. The company produces rack and pinion power steering gears for cars and light duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic systems and parts. It is also involved in the marketing of automotive parts in North America and Brazil, as well as the provision of after sales, and research and development support services. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou, the People's Republic of China.
Standard Motor Products Company Profile
Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. Its Engine Management segment manufactures and distributes engine management replacement parts, including electronic ignition control modules, fuel injectors, remanufactured diesel injectors and pumps, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, various sensors primarily measuring temperature, vehicle systems, electronic throttle bodies, and other engine management components primarily under the Standard, Blue Streak, BWD, Select, Intermotor, OEM, LockSmart, TechSmart, Tech Expert, and GP Sorensen brands. The company's Temperature Control segment manufacture, remanufacture, and distribute replacement parts for automotive temperature control systems, engine cooling systems, power window accessories, and windshield washer systems, primarily under the Four Seasons, EVERCO, ACi, and Hayden brands. This segment provides new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, AC service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to large retail chains, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Latin America, and Europe. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.
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