Reviewing Veoneer (NYSE:VNE) & China Zenix Auto International (NYSE:ZXAIY)

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Veoneer (NYSE:VNE) and China Zenix Auto International (OTCMKTS:ZXAIY) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Veoneer and China Zenix Auto International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veoneer 4 12 4 0 2.00
China Zenix Auto International 0 0 0 0 N/A

Veoneer presently has a consensus target price of $37.60, indicating a potential upside of 126.92%. Given Veoneer’s higher probable upside, analysts plainly believe Veoneer is more favorable than China Zenix Auto International.

Earnings & Valuation

This table compares Veoneer and China Zenix Auto International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veoneer $2.23 billion 0.65 -$275.00 million ($3.17) -5.23
China Zenix Auto International $458.09 million N/A -$1.16 million N/A N/A

China Zenix Auto International has lower revenue, but higher earnings than Veoneer.

Insider and Institutional Ownership

22.1% of Veoneer shares are owned by institutional investors. 0.3% of Veoneer shares are owned by company insiders. Comparatively, 70.2% of China Zenix Auto International shares are owned 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.

Profitability

This table compares Veoneer and China Zenix Auto International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veoneer -17.96% -19.50% -14.38%
China Zenix Auto International -1.28% -1.51% -1.00%

Summary

China Zenix Auto International beats Veoneer on 5 of the 9 factors compared between the two stocks.

About Veoneer

Veoneer, Inc. designs, develops, manufactures, and sells automotive safety electronic products in Asia, the Americas, and Europe. It operates in two segments, Electronics and Brake Systems. The company provides automotive radars, night driving assist systems, positioning systems, advanced driver assistance systems (ADAS), night vision systems, brake control systems, electronic control units, active safety sensors, and controllers; mono-and stereo-vision cameras; and passive safety electronics, such as airbag control units and crash sensors. It also offers ADAS software for highly automated driving (HAD) and autonomous driving (AD) solutions; and driver monitoring systems, LiDAR sensors, RoadScape positioning systems, and other technologies for HAD and AD solutions. Veoneer, Inc. is headquartered in Stockholm, Sweden.

About China Zenix Auto International

China Zenix Auto International Limited designs, manufactures, and sells commercial vehicle wheels to aftermarket and original equipment manufacturers in the People's Republic of China and internationally. The company offers tubed steel wheels, tubeless steel wheels, and off-road steel wheels; aluminum wheels; and wheel components, such as wheel discs. It sells its products directly and through a network of distributors under the Zhengxing, Zhengxing Prince, Haixia, Zhengchang, Lianxing, and CZX brands. The company was formerly known as Richwheel Limited and changed its name to China Zenix Auto International Limited in November 2010. China Zenix Auto International Limited was founded in 2003 and is headquartered in Zhangzhou, the People's Republic of China. China Zenix Auto International Limited is a subsidiary of Newrace Limited.

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