Comparing China Yuchai International (NYSE:CYD) & AB Volvo (OTCMKTS:VLVLY)

AB Volvo (OTCMKTS:VLVLY) and China Yuchai International (NYSE:CYD) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Risk & Volatility

AB Volvo has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.47%	23.01%	6.14%
China Yuchai International	N/A	N/A	N/A

Valuation and Earnings

This table compares AB Volvo and China Yuchai International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.32	$3.52 billion	$2.04	15.55
China Yuchai International	$3.51 billion	0.40	$76.46 million	N/A	N/A

AB Volvo has higher revenue and earnings than China Yuchai International.

Insider and Institutional Ownership

0.0% of AB Volvo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

AB Volvo pays an annual dividend of $0.59 per share and has a dividend yield of 1.9%. China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 1.4%. AB Volvo pays out 28.9% of its earnings in the form of a dividend. China Yuchai International has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for AB Volvo and China Yuchai International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	2	2.33
China Yuchai International	0	1	0	2	3.33

China Yuchai International has a consensus target price of $60.00, suggesting a potential upside of 59.02%. Given China Yuchai International’s stronger consensus rating and higher possible upside, analysts plainly believe China Yuchai International is more favorable than AB Volvo.

Summary

AB Volvo beats China Yuchai International on 8 of the 13 factors compared between the two stocks.

About AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

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.