Financial Contrast: PT Astra International Tbk (OTCMKTS:PTAIY) versus Martinrea International (OTCMKTS:MRETF)

PT Astra International Tbk (OTCMKTS:PTAIY) and Martinrea International (OTCMKTS:MRETF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider and Institutional Ownership

0.1% of PT Astra International Tbk shares are owned by institutional investors. Comparatively, 35.7% of Martinrea International shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for PT Astra International Tbk and Martinrea International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Astra International Tbk	1	0	0	0	1.00
Martinrea International	0	0	1	0	3.00

Martinrea International has a consensus price target of $17.00, indicating a potential upside of 104.41%. Given Martinrea International’s stronger consensus rating and higher possible upside, analysts clearly believe Martinrea International is more favorable than PT Astra International Tbk.

Profitability

This table compares PT Astra International Tbk and Martinrea International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Astra International Tbk	N/A	N/A	N/A
Martinrea International	N/A	N/A	N/A

Dividends

PT Astra International Tbk pays an annual dividend of $3,051.16 per share and has a dividend yield of 49,054.0%. Martinrea International pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. PT Astra International Tbk pays out 30.2% of its earnings in the form of a dividend. Martinrea International pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PT Astra International Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares PT Astra International Tbk and Martinrea International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Astra International Tbk	N/A	N/A	N/A	$10,100.29	0.00
Martinrea International	N/A	N/A	N/A	$0.09	89.37

PT Astra International Tbk is trading at a lower price-to-earnings ratio than Martinrea International, indicating that it is currently the more affordable of the two stocks.

Summary

Martinrea International beats PT Astra International Tbk on 5 of the 8 factors compared between the two stocks.

About PT Astra International Tbk

PT Astra International Tbk, together with its subsidiaries, operates in the automotive, financial services, heavy equipment, mining, construction, energy, agri, infrastructure and logistics, information technology, and property businesses in Indonesia and internationally. It provides cars, trucks, and motorcycles of various brands; manufactures and distributes automotive components for vehicle manufacturer and retail consumers; consultation services to its customers; financing for cars, motorcycles, and heavy equipment; and life, vehicle, and health insurance, as well as other insurance for commercial business. The company also distributes heavy equipment machineries; provides coal mining contracting services; operates coal mines; and engages in crude palm oil plantation business. In addition, it is involved in the operation of toll roads; rental of vehicles; sale of used cars; and provision of logistics and warehousing services, as well as freight forwarding service through ground, sea, and air transportation. Further, the company offers various information technology business solutions based on document, office, and information technology; undertakes commercial and residential projects, as well as property development works. Additionally, it is involved in the foundation; formwork and bekisting; pump services; mechanical, electrical, and plumbing activities; and dredging, reclamation, and marine works. The company was incorporated in 1957 and is headquartered in Jakarta, Indonesia. PT Astra International Tbk operates as a subsidiary of Jardine Cycle & Carriage Limited.

About Martinrea International

Martinrea International Inc. engages in the design, development, and manufacturing of engineered, value-added lightweight structures and propulsion systems worldwide. It offers lightweight structure products, including knuckles/control arms/links; subframes integral/fabricated products; complex assemblies; body structures; exterior trims; and trailer hitches. The company also provides engine blocks; transmission housings; graphene and nylon coated brake lines; fluid and thermal product, such as fuel filler pipes, brake lines, and thermal management components. In addition, the company offers flexible manufacturing products comprising front and rear suspension modules, front vertical corner modules, bus frame assemblies, structural parts and fabrications, and metallic tanks and reservoirs. The company was formerly known as Royal Laser Tech Corporation and changed its name to Martinrea International Inc. in June 2002. Martinrea International Inc. was incorporated in 1987 and is headquartered in Vaughan, Canada.