LCI Industries (NYSE: LCII) and Weichai Power (OTCMKTS:WEICY) are both mid-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

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This table compares LCI Industries and Weichai Power’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCI Industries $2.15 billion 1.25 $132.88 million $5.24 20.56
Weichai Power $11.86 billion 0.72 $223.75 million N/A N/A

Weichai Power has higher revenue and earnings than LCI Industries.

Profitability

This table compares LCI Industries and Weichai Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCI Industries 6.19% 23.34% 15.88%
Weichai Power N/A N/A N/A

Insider & Institutional Ownership

97.2% of LCI Industries shares are held by institutional investors. Comparatively, 0.0% of Weichai Power shares are held by institutional investors. 3.6% of LCI Industries shares are held by 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.

Volatility & Risk

LCI Industries has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Weichai Power has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 2.0%. Weichai Power pays an annual dividend of $0.20 per share and has a dividend yield of 2.3%. LCI Industries pays out 42.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for LCI Industries and Weichai Power, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 1 0 2 0 2.33
Weichai Power 0 0 0 0 N/A

LCI Industries presently has a consensus price target of $112.00, suggesting a potential upside of 3.94%. Given LCI Industries’ higher possible upside, research analysts plainly believe LCI Industries is more favorable than Weichai Power.

Summary

LCI Industries beats Weichai Power on 8 of the 13 factors compared between the two stocks.

About LCI Industries

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

About Weichai Power

Weichai Power Co., Ltd. designs, develops, produces, sells, and repairs diesel engines and related parts, automobiles, and other automobile components in the People's Republic of China and internationally. It operates through Diesel Engines, Automobiles and Other Major Automobile Components, Other Components, Import & Export Services, and Forklift Trucks and Supply Chain Solution segments. The company offers heavy duty truck, construction machinery, and passenger vehicle diesel engines; heavy-duty trucks; heavy-duty gear boxes; forklift trucks and warehouses technology services; and supply chain solutions. It also provides spark plugs, axles, chassis, air-conditioner compressors, hydraulic controlling parts, etc. The company was founded in 1953 and is headquartered in Weifang, the People's Republic of China. Weichai Power Co., Ltd. is a subsidiary of Weichai Group Holdings Limited.

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