Critical Survey: Aptiv (NYSE:APTV) & China Yuchai International (NYSE:CYD)

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

Volatility & Risk

Aptiv has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aptiv	0.81%	18.22%	7.35%
China Yuchai International	N/A	N/A	N/A

Earnings and Valuation

This table compares Aptiv and China Yuchai International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$20.40 billion	0.64	$165.00 million	$0.76	80.17
China Yuchai International	$3.51 billion	0.46	$76.46 million	N/A	N/A

Aptiv has higher revenue and earnings than China Yuchai International.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Aptiv and China Yuchai International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	1	3	19	1	2.83
China Yuchai International	0	2	0	1	2.67

Aptiv currently has a consensus target price of $91.51, suggesting a potential upside of 50.20%. China Yuchai International has a consensus target price of $60.00, suggesting a potential upside of 40.88%. Given Aptiv’s stronger consensus rating and higher probable upside, research analysts clearly believe Aptiv is more favorable than China Yuchai International.

Insider and Institutional Ownership

94.2% of Aptiv shares are held by institutional investors. 0.1% of Aptiv shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Aptiv beats China Yuchai International on 12 of the 12 factors compared between the two stocks.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

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.