China Yuchai International (NYSE:CYD) versus SES AI (NYSE:SES) Critical Review

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

Risk & Volatility

SES AI has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares SES AI and China Yuchai International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$21.00 million	17.56	-$73.04 million	($0.22)	-4.57
China Yuchai International	$3.51 billion	0.42	$76.46 million	N/A	N/A

China Yuchai International has higher revenue and earnings than SES AI.

Insider & Institutional Ownership

29.8% of SES AI shares are held by institutional investors. 13.8% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SES AI	-347.81%	-28.19%	-23.42%
China Yuchai International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for SES AI and China Yuchai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	0	1	0	2.00
China Yuchai International	0	1	0	2	3.33

SES AI presently has a consensus price target of $4.00, suggesting a potential upside of 297.61%. China Yuchai International has a consensus price target of $60.00, suggesting a potential upside of 52.49%. Given SES AI’s higher probable upside, research analysts plainly believe SES AI is more favorable than China Yuchai International.

Summary

China Yuchai International beats SES AI on 8 of the 13 factors compared between the two stocks.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.

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.