Head to Head Comparison: Aisin Seiki (OTCMKTS:ASEKY) versus Iochpe-Maxion (OTCMKTS:IOCJY)

Aisin Seiki (OTCMKTS:ASEKY) and Iochpe-Maxion (OTCMKTS:IOCJY) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

This table compares Aisin Seiki and Iochpe-Maxion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aisin Seiki	3.26%	7.21%	3.86%
Iochpe-Maxion	0.63%	2.06%	0.65%

Analyst Ratings

This is a summary of recent ratings and target prices for Aisin Seiki and Iochpe-Maxion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aisin Seiki	1	1	0	0	1.50
Iochpe-Maxion	0	1	0	0	2.00

Dividends

Aisin Seiki pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.9%. Aisin Seiki pays out 15.8% of its earnings in the form of a dividend. Iochpe-Maxion pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Aisin Seiki has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Iochpe-Maxion has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares Aisin Seiki and Iochpe-Maxion”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aisin Seiki	$32.15 billion	0.35	$699.31 million	$1.46	10.24
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	17.64

Aisin Seiki has higher revenue and earnings than Iochpe-Maxion. Aisin Seiki is trading at a lower price-to-earnings ratio than Iochpe-Maxion, indicating that it is currently the more affordable of the two stocks.

Summary

Aisin Seiki beats Iochpe-Maxion on 8 of the 12 factors compared between the two stocks.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.