China Automotive Systems (NASDAQ:CAAS) and Icahn Enterprises (NASDAQ:IEP) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
3.1% of China Automotive Systems shares are held by institutional investors. Comparatively, 97.9% of Icahn Enterprises shares are held by institutional investors. 63.3% of China Automotive Systems shares are held by company insiders. Comparatively, 90.1% of Icahn Enterprises shares are held by company insiders. 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.
Valuation and Earnings
This table compares China Automotive Systems and Icahn Enterprises' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
China Automotive Systems | $431.43 million | 0.32 | $9.96 million | $0.32 | 14.03 |
Icahn Enterprises | $8.99 billion | 1.53 | $-1,098,000,000.00 | ($5.23) | -10.91 |
China Automotive Systems has higher earnings, but lower revenue than Icahn Enterprises. Icahn Enterprises is trading at a lower price-to-earnings ratio than China Automotive Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
China Automotive Systems has a beta of 3.28, indicating that its stock price is 228% more volatile than the S&P 500. Comparatively, Icahn Enterprises has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for China Automotive Systems and Icahn Enterprises, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
Icahn Enterprises | 0 | 0 | 0 | 0 | N/A |
China Automotive Systems presently has a consensus price target of $5.00, suggesting a potential upside of 11.36%. Given China Automotive Systems' higher probable upside, equities analysts clearly believe China Automotive Systems is more favorable than Icahn Enterprises.
Profitability
This table compares China Automotive Systems and Icahn Enterprises' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
China Automotive Systems | N/A | N/A | N/A |
Icahn Enterprises | -24.19% | -19.30% | -7.90% |
Summary
China Automotive Systems beats Icahn Enterprises on 8 of the 12 factors compared between the two stocks.