Contrasting China Zenix Auto International (OTCMKTS:ZXAIY) & Gentex (NASDAQ:GNTX)

China Zenix Auto International (OTCMKTS:ZXAIY) and Gentex (NASDAQ:GNTX) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Risk & Volatility

China Zenix Auto International has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, Gentex has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

86.8% of Gentex shares are held by institutional investors. 0.4% of Gentex shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares China Zenix Auto International and Gentex’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	$271.18 million	0.20	-$61.16 million	($2.23)	-0.46
Gentex	$2.30 billion	3.41	$428.40 million	$1.84	18.45

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

Analyst Ratings

This is a summary of recent ratings and target prices for China Zenix Auto International and Gentex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Zenix Auto International	0	0	0	0	N/A
Gentex	0	3	3	0	2.50

Gentex has a consensus target price of $37.67, indicating a potential upside of 10.98%. Given Gentex’s higher possible upside, analysts plainly believe Gentex is more favorable than China Zenix Auto International.

Profitability

This table compares China Zenix Auto International and Gentex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Zenix Auto International	-41.87%	-40.07%	-24.13%
Gentex	18.63%	19.25%	16.98%

Summary

Gentex beats China Zenix Auto International on 12 of the 13 factors compared between the two stocks.

About China Zenix Auto International

China Zenix Auto International Ltd. engages in the design, manufacture, and sale of steel wheels for commercial vehicles. It operates through the following segments: PRC Aftermarket Sales, PRC OEM Sales, and International Sales. The PRC Aftermarket Sales segment produces and sells steel and aluminum wheels to distributors. The PRC OEM Sales segment produces and sells steel and aluminum wheels to vehicle manufacturers. The International Sales segment manufactures wheels to distributors and vehicle manufacturers outside China. The company was founded on July 11, 2008 and is headquartered in Zhangzhou, China.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.