Head to Head Survey: China Yuchai International (NYSE:CYD) & Hesai Group (NASDAQ:HSAI)

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

Earnings and Valuation

This table compares China Yuchai International and Hesai Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$3.51 billion	0.61	$77.63 million	N/A	N/A
Hesai Group	$432.94 million	6.67	$62.33 million	$0.44	46.89

China Yuchai International has higher revenue and earnings than Hesai Group.

Profitability

This table compares China Yuchai International and Hesai Group’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
Hesai Group	14.75%	6.03%	4.77%

Institutional and Insider Ownership

48.5% of Hesai Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for China Yuchai International and Hesai Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	1	0	2	3.33
Hesai Group	0	1	6	1	3.00

China Yuchai International presently has a consensus target price of $60.00, indicating a potential upside of 4.33%. Hesai Group has a consensus target price of $29.96, indicating a potential upside of 45.23%. Given Hesai Group’s higher probable upside, analysts plainly believe Hesai Group is more favorable than China Yuchai International.

Volatility and Risk

China Yuchai International has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Summary

Hesai Group beats China Yuchai International on 8 of the 12 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 Hesai Group

Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR). Its LiDAR products are used in passenger and commercial vehicles with advanced driver assistance systems; autonomous passenger and freight mobility services; and other applications, such as delivery robots, street sweeping robots, and logistics robots in restricted areas. Hesai Group was founded in 2014 and is based in Shanghai, China.