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Head-To-Head Comparison: Envirotech Vehicles (NASDAQ:EVTV) and China Automotive Systems (NASDAQ:CAAS)

Defense World ·  Jan 28, 2023 14:37

Envirotech Vehicles (NASDAQ:EVTV – Get Rating) and China Automotive Systems (NASDAQ:CAAS – Get Rating) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Envirotech Vehicles and China Automotive Systems, as provided by MarketBeat.com.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envirotech Vehicles 0 0 0 0 N/A
China Automotive Systems 0 1 0 0 2.00

China Automotive Systems has a consensus target price of $6.00, indicating a potential downside of 16.90%. Given China Automotive Systems' higher probable upside, analysts clearly believe China Automotive Systems is more favorable than Envirotech Vehicles.

Institutional & Insider Ownership

5.2% of Envirotech Vehicles shares are owned by institutional investors. Comparatively, 3.0% of China Automotive Systems shares are owned by institutional investors. 5.8% of Envirotech Vehicles shares are owned by insiders. Comparatively, 63.8% of China Automotive Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Envirotech Vehicles and China Automotive Systems' revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envirotech Vehicles $2.04 million 25.30 -$7.65 million ($0.46) -7.48
China Automotive Systems $497.99 million 0.44 $11.05 million $0.71 10.17

China Automotive Systems has higher revenue and earnings than Envirotech Vehicles. Envirotech Vehicles is trading at a lower price-to-earnings ratio than China Automotive Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Envirotech Vehicles and China Automotive Systems' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envirotech Vehicles -100.18% -10.66% -10.49%
China Automotive Systems 4.05% 6.61% 3.11%

Volatility and Risk

Envirotech Vehicles has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.

Summary

China Automotive Systems beats Envirotech Vehicles on 9 of the 12 factors compared between the two stocks.

About Envirotech Vehicles

(Get Rating)

Envirotech Vehicles is a provider and manufacturer of purpose-built, all-electric, zero-emission vehicles and zero-emission drive trains for integration in medium to heavy-duty commercial fleet vehicles. The company serves commercial and last-mile delivery fleets, school districts, public and private transportation service companies, colleges, and universities and meet the increasing demand for heavy-duty electric vehicles. The company was founded by Edward Riggs Monfort on August 6, 2012 and is headquartered in Osceloa, AR.

About China Automotive Systems

(Get Rating)

China Automotive Systems, Inc. is a holding company, which engages in the manufacture and sale of automotive products, through its subsidiaries. It operates through the following geographical segments: Henglong, Jiulong, Shenyang, Wuhu, Hubei Henglong, Henglong KYB, and Other Entities. It also supplies power steering systems and component. The company was founded on June 29, 1999 and is headquartered in Wuhan, China.

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