China Zenix Auto International (OTCMKTS:ZXAIY) and U Power (NASDAQ:UCAR) Critical Analysis

China Zenix Auto International (OTCMKTS:ZXAIY) and U Power (NASDAQ:UCAR) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares China Zenix Auto International and U Power’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Zenix Auto International	$271.18 million	0.20	-$61.16 million	($2.23)	-0.46
U Power	$2.78 million	1.47	-$2.72 million	N/A	N/A

U Power has lower revenue, but higher earnings than China Zenix Auto International.

Risk & Volatility

China Zenix Auto International has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, U Power has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for China Zenix Auto International and U Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Zenix Auto International	0	0	0	0	N/A
U Power	0	0	0	0	N/A

Profitability

This table compares China Zenix Auto International and U Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Zenix Auto International	-41.87%	-40.07%	-24.13%
U Power	N/A	N/A	N/A

Institutional and Insider Ownership

13.2% of U Power shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

U Power beats China Zenix Auto International on 6 of the 8 factors compared between the two stocks.

About China Zenix Auto International

China Zenix Auto International Ltd. engages in the design, manufacture, and sale of steel wheels for commercial vehicles. It operates through the following segments: PRC Aftermarket Sales, PRC OEM Sales, and International Sales. The PRC Aftermarket Sales segment produces and sells steel and aluminum wheels to distributors. The PRC OEM Sales segment produces and sells steel and aluminum wheels to vehicle manufacturers. The International Sales segment manufactures wheels to distributors and vehicle manufacturers outside China. The company was founded on July 11, 2008 and is headquartered in Zhangzhou, China.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.