China XD Plastics (CXDC) and Cooper-Standard (CPS) Financial Analysis

China XD Plastics (NASDAQ: CXDC) and Cooper-Standard (NYSE:CPS) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Valuation & Earnings

This table compares China XD Plastics and Cooper-Standard’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China XD Plastics $1.20 billion 0.19 $101.61 million $1.35 3.41
Cooper-Standard $3.47 billion 0.62 $138.98 million $7.32 16.67

Cooper-Standard has higher revenue and earnings than China XD Plastics. China XD Plastics is trading at a lower price-to-earnings ratio than Cooper-Standard, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares China XD Plastics and Cooper-Standard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China XD Plastics 7.16% 13.19% 4.01%
Cooper-Standard 3.88% 24.99% 7.71%

Institutional & Insider Ownership

11.2% of China XD Plastics shares are owned by institutional investors. Comparatively, 96.0% of Cooper-Standard shares are owned by institutional investors. 66.4% of China XD Plastics shares are owned by company insiders. Comparatively, 1.1% of Cooper-Standard shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

China XD Plastics has a beta of 2.6, suggesting that its share price is 160% more volatile than the S&P 500. Comparatively, Cooper-Standard has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for China XD Plastics and Cooper-Standard, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China XD Plastics 0 0 0 0 N/A
Cooper-Standard 1 3 2 0 2.17

Cooper-Standard has a consensus price target of $114.80, indicating a potential downside of 5.95%. Given Cooper-Standard’s higher probable upside, analysts clearly believe Cooper-Standard is more favorable than China XD Plastics.

Summary

Cooper-Standard beats China XD Plastics on 10 of the 13 factors compared between the two stocks.

China XD Plastics Company Profile

China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).

Cooper-Standard Company Profile

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.

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