Stoneridge (NYSE: SRI) and China XD Plastics Company Limited (NASDAQ:CXDC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitabiliy, earnings, dividends and risk.
Volatility and Risk
Stoneridge has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, China XD Plastics Company Limited has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.
Valuation and Earnings
This table compares Stoneridge and China XD Plastics Company Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stoneridge||$737.67 million||0.59||$80.10 million||$2.79||5.55|
|China XD Plastics Company Limited||$1.22 billion||0.19||$201.58 million||$1.53||3.06|
China XD Plastics Company Limited has higher revenue and earnings than Stoneridge. China XD Plastics Company Limited is trading at a lower price-to-earnings ratio than Stoneridge, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Stoneridge and China XD Plastics Company Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China XD Plastics Company Limited||0||0||0||0||N/A|
Stoneridge currently has a consensus price target of $19.50, suggesting a potential upside of 25.97%. Given Stoneridge’s higher probable upside, equities research analysts clearly believe Stoneridge is more favorable than China XD Plastics Company Limited.
This table compares Stoneridge and China XD Plastics Company Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China XD Plastics Company Limited||8.18%||16.99%||5.65%|
Insider & Institutional Ownership
89.1% of Stoneridge shares are held by institutional investors. Comparatively, 11.5% of China XD Plastics Company Limited shares are held by institutional investors. 5.3% of Stoneridge shares are held by insiders. Comparatively, 66.3% of China XD Plastics Company Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Stoneridge beats China XD Plastics Company Limited on 9 of the 13 factors compared between the two stocks.
Stoneridge Company Profile
Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.
China XD Plastics Company Limited 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).
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