Head to Head Analysis: PHINIA (NYSE:PHIN) & China Zenix Auto International (OTCMKTS:ZXAIY)

China Zenix Auto International (OTCMKTS:ZXAIY) and PHINIA (NYSE:PHIN) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares China Zenix Auto International and PHINIA”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
PHINIA	$3.40 billion	0.49	$79.00 million	$1.75	23.49

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

Institutional & Insider Ownership

90.9% of PHINIA shares are owned by institutional investors. 1.5% of PHINIA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for China Zenix Auto International and PHINIA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Zenix Auto International	0	0	0	0	0.00
PHINIA	0	1	2	1	3.00

PHINIA has a consensus target price of $56.00, indicating a potential upside of 36.25%. Given PHINIA’s stronger consensus rating and higher probable upside, analysts plainly believe PHINIA is more favorable than China Zenix Auto International.

Profitability

This table compares China Zenix Auto International and PHINIA’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%
PHINIA	2.32%	10.12%	4.45%

Volatility and Risk

China Zenix Auto International has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

PHINIA beats China Zenix Auto International on 14 of the 15 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 PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.