Superior Industries International (SUP) & China XD Plastics (CXDC) Critical Analysis

Superior Industries International (NYSE: SUP) and China XD Plastics (NASDAQ:CXDC) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. China XD Plastics does not pay a dividend. Superior Industries International pays out -180.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Superior Industries International and China XD Plastics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Industries International 0 1 2 0 2.67
China XD Plastics 0 0 0 0 N/A

Superior Industries International currently has a consensus target price of $22.67, suggesting a potential upside of 43.92%. Given Superior Industries International’s higher probable upside, analysts plainly believe Superior Industries International is more favorable than China XD Plastics.

Volatility & Risk

Superior Industries International has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, China XD Plastics has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500.

Earnings and Valuation

This table compares Superior Industries International and China XD Plastics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Industries International $732.70 million 0.54 $41.38 million ($0.20) -78.75
China XD Plastics $1.20 billion 0.19 $101.61 million $1.35 3.46

China XD Plastics has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than China XD Plastics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

84.2% of Superior Industries International shares are owned by institutional investors. Comparatively, 11.2% of China XD Plastics shares are owned by institutional investors. 1.5% of Superior Industries International shares are owned by insiders. Comparatively, 66.4% of China XD Plastics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Superior Industries International and China XD Plastics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Industries International 0.66% 7.96% 3.32%
China XD Plastics 7.16% 13.19% 4.01%

Summary

China XD Plastics beats Superior Industries International on 8 of the 15 factors compared between the two stocks.

About Superior Industries International

Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.

About China XD Plastics

China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).

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