Critical Survey: China Merchants Holdings International (OTCMKTS:CMHHY) versus Addentax Group (NASDAQ:ATXG)

China Merchants Holdings International (OTCMKTS:CMHHY) and Addentax Group (NASDAQ:ATXG) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for China Merchants Holdings International and Addentax Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Merchants Holdings International	0	0	0	0	0.00
Addentax Group	1	0	0	0	1.00

Earnings and Valuation

This table compares China Merchants Holdings International and Addentax Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Merchants Holdings International	$1.52 billion	5.67	$1.02 billion	N/A	N/A
Addentax Group	$4.18 million	0.88	-$5.09 million	($0.85)	-0.37

China Merchants Holdings International has higher revenue and earnings than Addentax Group.

Profitability

This table compares China Merchants Holdings International and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Merchants Holdings International	N/A	N/A	N/A
Addentax Group	-182.28%	-17.86%	-10.90%

Institutional and Insider Ownership

10.1% of Addentax Group shares are held by institutional investors. 2.7% of Addentax Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

China Merchants Holdings International has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

China Merchants Holdings International beats Addentax Group on 6 of the 10 factors compared between the two stocks.

About China Merchants Holdings International

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Brazil, Hong Kong, Taiwan, and internationally. The company operates through Ports Operation, Bonded Logistics Operation, and Other Operations segments. It engages in the container, and bulk and general cargo terminal operation; logistic park operation, ports transportation, and airport cargo handling; and property development, holding, and investment activities. The company also provides container related logistics services; financial services; and port development, management, and operation services. In addition, it operates berths and tugboats; and holds various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.