Nokian Renkaat Oyj (OTCMKTS:NKRKY) versus China Automotive Systems (NASDAQ:CAAS) Financial Analysis

China Automotive Systems (NASDAQ:CAASGet Free Report) and Nokian Renkaat Oyj (OTCMKTS:NKRKYGet Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares China Automotive Systems and Nokian Renkaat Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Automotive Systems 5.59% 10.58% 5.07%
Nokian Renkaat Oyj N/A N/A N/A

Valuation and Earnings

This table compares China Automotive Systems and Nokian Renkaat Oyj”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Automotive Systems $765.74 million 0.19 $42.84 million $1.42 3.31
Nokian Renkaat Oyj N/A N/A N/A $0.45 19.62

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

Analyst Ratings

This is a summary of current recommendations and price targets for China Automotive Systems and Nokian Renkaat Oyj, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Automotive Systems 0 1 0 0 2.00
Nokian Renkaat Oyj 0 1 0 0 2.00

Insider & Institutional Ownership

5.2% of China Automotive Systems shares are owned by institutional investors. Comparatively, 0.2% of Nokian Renkaat Oyj shares are owned by institutional investors. 64.8% of China Automotive Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

China Automotive Systems beats Nokian Renkaat Oyj on 7 of the 8 factors compared between the two stocks.

About China Automotive Systems

(Get Free Report)

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.

About Nokian Renkaat Oyj

(Get Free Report)

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

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