American Axle & Manufacturing (NYSE:DCH – Get Free Report) and China Zenix Auto International (OTCMKTS:ZXAIY – Get Free Report) 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 valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for American Axle & Manufacturing and China Zenix Auto International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 1 | 0 | 0 | 1.50 |
| China Zenix Auto International | 0 | 0 | 0 | 0 | 0.00 |
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 will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $5.83 billion | 0.15 | $33.80 million | ($0.18) | -40.28 |
| China Zenix Auto International | $271.18 million | 0.20 | -$61.16 million | ($2.23) | -0.46 |
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.
Volatility and Risk
American Axle & Manufacturing has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, China Zenix Auto International has a beta of 2.6, suggesting that its share price is 160% more volatile than the S&P 500.
Profitability
This table compares American Axle & Manufacturing and China Zenix Auto International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | 0.72% | 7.92% | 0.97% |
| China Zenix Auto International | -41.87% | -40.07% | -24.13% |
Summary
American Axle & Manufacturing beats China Zenix Auto International on 9 of the 12 factors compared between the two stocks.
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.
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.
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