China Zenix Auto International (OTCMKTS:ZXAIY – Get Free Report) and American Axle & Manufacturing (NYSE:DCH – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
91.4% of American Axle & Manufacturing shares are owned by institutional investors. 3.7% of American Axle & Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
China Zenix Auto International has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| China Zenix Auto International | -41.87% | -40.07% | -24.13% |
| American Axle & Manufacturing | -0.34% | 10.00% | 1.17% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for China Zenix Auto International and American Axle & Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Zenix Auto International | 0 | 0 | 0 | 0 | 0.00 |
| American Axle & Manufacturing | 2 | 0 | 3 | 0 | 2.20 |
American Axle & Manufacturing has a consensus target price of $12.45, indicating a potential upside of 78.37%. Given American Axle & Manufacturing’s stronger consensus rating and higher probable upside, analysts clearly believe American Axle & Manufacturing is more favorable than China Zenix Auto International.
Valuation & Earnings
This table compares China Zenix Auto International and American Axle & Manufacturing”s top-line revenue, earnings per share (EPS) 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 |
| American Axle & Manufacturing | $5.84 billion | 0.28 | -$19.70 million | ($0.18) | -38.78 |
American Axle & Manufacturing has higher revenue and earnings than China Zenix Auto International. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than China Zenix Auto International, indicating that it is currently the more affordable of the two stocks.
Summary
American Axle & Manufacturing beats China Zenix Auto International on 12 of the 14 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 American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.
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