ECARX (NASDAQ:ECX – Get Free Report) and China Automotive Systems (NASDAQ:CAAS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares ECARX and China Automotive Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ECARX | -2.25% | N/A | -2.75% |
| China Automotive Systems | 5.59% | 10.58% | 5.07% |
Volatility and Risk
ECARX has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, China Automotive Systems has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ECARX | 1 | 1 | 0 | 0 | 1.50 |
| China Automotive Systems | 0 | 0 | 1 | 0 | 3.00 |
Insider and Institutional Ownership
5.2% of China Automotive Systems shares are owned by institutional investors. 20.0% of ECARX shares are owned by insiders. Comparatively, 64.8% of China Automotive Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares ECARX and China Automotive Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ECARX | $847.90 million | 0.44 | -$66.04 million | ($0.05) | -21.00 |
| China Automotive Systems | $765.74 million | 0.21 | $42.84 million | $1.42 | 3.80 |
China Automotive Systems has lower revenue, but higher earnings than ECARX. ECARX is trading at a lower price-to-earnings ratio than China Automotive Systems, indicating that it is currently the more affordable of the two stocks.
Summary
China Automotive Systems beats ECARX on 11 of the 13 factors compared between the two stocks.
About ECARX
ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.
About China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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