Delphi Automotive (APTV) versus China XD Plastics (CXDC) Critical Survey

Delphi Automotive (NYSE: APTV) and China XD Plastics (NASDAQ:CXDC) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares Delphi Automotive and China XD Plastics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delphi Automotive 8.00% 57.92% 14.04%
China XD Plastics 7.16% 13.19% 4.01%

Insider & Institutional Ownership

90.8% of Delphi Automotive shares are owned by institutional investors. Comparatively, 11.2% of China XD Plastics shares are owned by institutional investors. 0.3% of Delphi Automotive shares are owned by company insiders. Comparatively, 66.4% of China XD Plastics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Delphi Automotive and China XD Plastics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delphi Automotive 1 3 14 0 2.72
China XD Plastics 0 0 0 0 N/A

Delphi Automotive currently has a consensus price target of $86.59, suggesting a potential upside of 1.13%. Given Delphi Automotive’s higher probable upside, research analysts plainly believe Delphi Automotive is more favorable than China XD Plastics.

Earnings and Valuation

This table compares Delphi Automotive and China XD Plastics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Delphi Automotive $16.66 billion 1.37 $1.26 billion $5.13 16.69
China XD Plastics $1.20 billion 0.19 $101.61 million $1.35 3.44

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

Dividends

Delphi Automotive pays an annual dividend of $1.49 per share and has a dividend yield of 1.7%. China XD Plastics does not pay a dividend. Delphi Automotive pays out 29.0% of its earnings in the form of a dividend.

Summary

Delphi Automotive beats China XD Plastics on 12 of the 14 factors compared between the two stocks.

About Delphi Automotive

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

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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