China XD Plastics (NASDAQ: CXDC) and Superior Industries International (NYSE:SUP) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Risk & Volatility
China XD Plastics has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
11.2% of China XD Plastics shares are held by institutional investors. Comparatively, 84.2% of Superior Industries International shares are held by institutional investors. 66.4% of China XD Plastics shares are held by company insiders. Comparatively, 1.5% of Superior Industries International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares China XD Plastics and Superior Industries International’s top-line 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|
|Superior Industries International||$732.70 million||0.57||$41.38 million||($0.20)||-83.50|
China XD Plastics has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than China XD Plastics, indicating that it is currently the more affordable of the two stocks.
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. China XD Plastics does not pay a dividend. Superior Industries International pays out -180.0% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for China XD Plastics and Superior Industries International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China XD Plastics||0||0||0||0||N/A|
|Superior Industries International||0||1||3||0||2.75|
Superior Industries International has a consensus target price of $23.75, suggesting a potential upside of 42.22%. Given Superior Industries International’s higher probable upside, analysts plainly believe Superior Industries International is more favorable than China XD Plastics.
This table compares China XD Plastics and Superior Industries International’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%|
|Superior Industries International||0.66%||7.96%||3.32%|
China XD Plastics beats Superior Industries International on 9 of the 15 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).
Superior Industries International Company Profile
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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