China XD Plastics (CXDC) versus Magna International (MGA) Head-To-Head Survey

China XD Plastics (NASDAQ: CXDC) and Magna International (NYSE:MGA) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares China XD Plastics and Magna International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China XD Plastics 7.16% 13.19% 4.01%
Magna International 5.63% 19.46% 8.92%

Insider and Institutional Ownership

11.3% of China XD Plastics shares are owned by institutional investors. Comparatively, 59.7% of Magna International shares are owned by institutional investors. 66.4% of China XD Plastics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Magna International pays an annual dividend of $1.10 per share and has a dividend yield of 1.9%. China XD Plastics does not pay a dividend. Magna International pays out 19.6% of its earnings in the form of a dividend. China XD Plastics has increased its dividend for 6 consecutive years.

Volatility & Risk

China XD Plastics has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for China XD Plastics and Magna International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China XD Plastics 0 0 0 0 N/A
Magna International 1 4 9 1 2.67

Magna International has a consensus target price of $61.83, indicating a potential upside of 9.03%. Given Magna International’s higher probable upside, analysts plainly believe Magna International is more favorable than China XD Plastics.

Earnings and Valuation

This table compares China XD Plastics and Magna International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China XD Plastics $1.20 billion 0.19 $101.61 million $1.35 3.33
Magna International $36.45 billion 0.56 $2.03 billion $5.61 10.11

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

Summary

Magna International beats China XD Plastics on 12 of the 17 factors compared between the two stocks.

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).

About Magna International

Magna International Inc. (Magna) is a global automotive supplier. The Company’s segments are North America, Europe, Asia, Rest of World, and Corporate and Other. The Company’s product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing. The Company has over 320 manufacturing operations and approximately 100 product development, engineering and sales centers in over 30 countries. It provides a range of body, chassis and engineering solutions to its original equipment manufacturer (OEM) customers. It has capabilities in powertrain design, development, testing and manufacturing. It offers bumper fascia systems, exterior trim and modular systems. It offers exterior and interior mirror systems. It offers sealing, trim, engineered glass and module systems. It offers softtops, retractable hardtops, modular tops and hardtops.

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