Reviewing Aptiv (NYSE:APTV) and China Yuchai International (NYSE:CYD)

China Yuchai International (NYSE:CYD) and Aptiv (NYSE:APTV) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Dividends

China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.3%. Aptiv pays an annual dividend of $0.88 per share and has a dividend yield of 1.5%. Aptiv pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Yuchai International has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

94.2% of Aptiv shares are held by institutional investors. 0.1% of Aptiv shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares China Yuchai International and Aptiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Yuchai International	N/A	N/A	N/A
Aptiv	0.81%	18.22%	7.35%

Analyst Recommendations

This is a summary of current ratings and price targets for China Yuchai International and Aptiv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Yuchai International	0	2	0	1	2.67
Aptiv	1	3	19	1	2.83

China Yuchai International presently has a consensus price target of $60.00, suggesting a potential upside of 42.28%. Aptiv has a consensus price target of $90.37, suggesting a potential upside of 54.55%. Given Aptiv’s stronger consensus rating and higher probable upside, analysts plainly believe Aptiv is more favorable than China Yuchai International.

Volatility & Risk

China Yuchai International has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares China Yuchai International and Aptiv”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Yuchai International	$3.51 billion	0.45	$76.46 million	N/A	N/A
Aptiv	$20.40 billion	0.61	$165.00 million	$0.76	76.94

Aptiv has higher revenue and earnings than China Yuchai International.

Summary

Aptiv beats China Yuchai International on 13 of the 15 factors compared between the two stocks.

About China Yuchai International

China Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines for trucks, buses and passenger vehicles, marine, industrial, construction, agriculture, and generator set applications in the People’s Republic of China and internationally. It operates through two segments, Yuchai and HLGE. The Yuchai segment manufactures on- and off-road powertrain solutions and applications. The HLGE is engaged in hospitality and property development activities. The company provides diesel engines comprising 4- and 6-cylinder diesel engines, high horsepower marine diesel engines, and power generator engines; natural gas engines, methanol combustion engines, diesel power generators, diesel engine parts, and remanufacturing services; as well as plug in hybrid engines, range extenders, power generation powertrains, hybrid powertrains, integrated electric drive axel powertrains, and fuel cell systems. It also offers maintenance and retrofitting services. It distributes its engines directly to auto original equipment manufacturers, agents, and retailers. The company was founded in 1951 and is based in Singapore.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.