China Zenix Auto International (OTCMKTS:ZXAIY) and Honeywell International (NYSE:HON) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Earnings and Valuation
This table compares China Zenix Auto International and Honeywell International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Zenix Auto International||$458.09 million||N/A||-$1.16 million||N/A||N/A|
|Honeywell International||$41.80 billion||3.03||$6.77 billion||$8.01||21.72|
Honeywell International pays an annual dividend of $3.28 per share and has a dividend yield of 1.9%. China Zenix Auto International does not pay a dividend. Honeywell International pays out 40.9% of its earnings in the form of a dividend. Honeywell International has raised its dividend for 8 consecutive years.
Insider and Institutional Ownership
75.7% of Honeywell International shares are owned by institutional investors. 0.7% of Honeywell International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares China Zenix Auto International and Honeywell International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Zenix Auto International||-1.28%||-1.51%||-1.00%|
Risk and Volatility
China Zenix Auto International has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Honeywell International has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
This is a summary of current ratings for China Zenix Auto International and Honeywell International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Zenix Auto International||0||0||0||0||N/A|
Honeywell International has a consensus target price of $175.25, suggesting a potential upside of 0.75%. Given Honeywell International’s higher probable upside, analysts plainly believe Honeywell International is more favorable than China Zenix Auto International.
Honeywell International beats China Zenix Auto International on 12 of the 14 factors compared between the two stocks.
About China Zenix Auto International
China Zenix Auto International Limited designs, manufactures, and sells commercial vehicle wheels to aftermarket and original equipment manufacturers in the People's Republic of China and internationally. The company offers tubed steel wheels, tubeless steel wheels, and off-road steel wheels; aluminum wheels; and wheel components, such as wheel discs. It sells its products directly and through a network of distributors under the Zhengxing, Zhengxing Prince, Haixia, Zhengchang, Lianxing, and CZX brands. The company was formerly known as Richwheel Limited and changed its name to China Zenix Auto International Limited in November 2010. China Zenix Auto International Limited was founded in 2003 and is headquartered in Zhangzhou, the People's Republic of China. China Zenix Auto International Limited is a subsidiary of Newrace Limited.
About Honeywell International
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment supplies products, software, and services for aircrafts and vehicles. This segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and connected solutions and data services for the aftermarket, as well as provides wireless connectivity and management and technical services. The company's Honeywell Building Technologies segment offers products, software, solutions, and technologies, such as sensors, switches, control systems and instruments for energy management; access control; video surveillance; fire products; remote patient monitoring systems; advanced software applications; and installation, maintenance and upgrades of systems. Its Performance Materials and Technologies segment develops and manufactures process technology products, including catalysts and adsorbents, equipment, and consulting services. The company's Safety and Productivity Solutions segment provides products, software, and connected solutions. Its safety products comprise personal protection equipment, apparel, gear, and footwear; gas detection technology; and cloud-based notification and emergency messaging. This segment's productivity solutions products and services include mobile devices and software; supply chain and warehouse automation equipment, software and solutions; custom-engineered sensors, switches, and controls; and software-based data and asset management productivity solutions. Honeywell International Inc. was incorporated in 1985 and is based in Morris Plains, New Jersey.
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