Hino Motors (OTCMKTS:HINOY) and Kaixin (NASDAQ:KXIN) Critical Review

Hino Motors (OTCMKTS:HINOY) and Kaixin (NASDAQ:KXIN) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Hino Motors and Kaixin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hino Motors	1.56%	-4.31%	-0.78%
Kaixin	N/A	N/A	N/A

Risk & Volatility

Hino Motors has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500. Comparatively, Kaixin has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hino Motors and Kaixin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hino Motors	0	0	0	0	0.00
Kaixin	1	0	0	0	1.00

Institutional and Insider Ownership

2.0% of Kaixin shares are owned by institutional investors. 20.8% of Kaixin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hino Motors and Kaixin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hino Motors	$11.15 billion	N/A	-$1.44 billion	$2.90	9.57
Kaixin	$31.53 million	0.07	-$40.97 million	N/A	N/A

Kaixin has lower revenue, but higher earnings than Hino Motors.

Summary

Kaixin beats Hino Motors on 7 of the 9 factors compared between the two stocks.

About Hino Motors

Hino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide. It offers trucks and buses; and light commercial vehicles and passenger vehicles, as well as various engines, service parts, etc. The company was founded in 1910 and is headquartered in Hino, Japan. Hino Motors, Ltd. operates as a subsidiary of Toyota Motor Corporation.

About Kaixin

Kaixin Auto Holdings primarily engages in the sale of domestic and imported automobiles in the People's Republic of China. It focuses on automobiles brands, such as Audi, BMW, Mercedes-Benz, Land Rover, Bentley, Rolls-Royce, and Porsche. The company is headquartered in Beijing, the People's Republic of China.