China Yuchai International (NYSE:CYD) vs. Adient (NYSE:ADNT) Critical Review

China Yuchai International (NYSE:CYD) and Adient (NYSE:ADNT) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Volatility and Risk

China Yuchai International has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Adient has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Yuchai International	N/A	N/A	N/A
Adient	-2.06%	8.18%	1.89%

Analyst Ratings

This is a summary of recent recommendations for China Yuchai International and Adient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	3	0	1	2.50
Adient	2	6	4	0	2.17

China Yuchai International presently has a consensus price target of $60.00, indicating a potential upside of 19.93%. Adient has a consensus price target of $26.61, indicating a potential upside of 0.50%. Given China Yuchai International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe China Yuchai International is more favorable than Adient.

Valuation & Earnings

This table compares China Yuchai International and Adient”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$2.66 billion	0.71	$45.03 million	N/A	N/A
Adient	$14.54 billion	0.14	-$281.00 million	($3.62)	-7.31

China Yuchai International has higher earnings, but lower revenue than Adient.

Institutional & Insider Ownership

92.4% of Adient shares are owned by institutional investors. 0.9% of Adient shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Adient beats China Yuchai International on 7 of the 13 factors compared between the two stocks.

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.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.