China Automotive Systems (NASDAQ:CAAS – Get Free Report) and Service Team (OTCMKTS:SVTE – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Insider and Institutional Ownership
5.2% of China Automotive Systems shares are held by institutional investors. 64.8% of China Automotive Systems shares are held by insiders. Comparatively, 0.0% of Service Team shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares China Automotive Systems and Service Team”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Automotive Systems | $765.74 million | 0.18 | $42.84 million | $1.42 | 3.16 |
| Service Team | N/A | N/A | N/A | N/A | N/A |
China Automotive Systems has higher revenue and earnings than Service Team.
Analyst Ratings
This is a summary of current ratings and recommmendations for China Automotive Systems and Service Team, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
| Service Team | 0 | 0 | 0 | 0 | 0.00 |
Given Service Team’s higher possible upside, analysts plainly believe Service Team is more favorable than China Automotive Systems.
Profitability
This table compares China Automotive Systems and Service Team’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Automotive Systems | 5.59% | 10.58% | 5.07% |
| Service Team | N/A | N/A | N/A |
Risk and Volatility
China Automotive Systems has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Service Team has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.
Summary
China Automotive Systems beats Service Team on 8 of the 9 factors compared between the two stocks.
About China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
About Service Team
Service Team Inc. manufactures, maintains, and repairs truck bodies in the United States. It manufactures truck bodies that are attached to a truck chassis; and other products used by the trucking industry. The vans are available for hauling dry freight or refrigerated freight. It serves auto dealers and users of trucks, such as dairies, food distributors, and local delivery. The company was founded in 2011 and is based in Villa Park, California.
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