Head-To-Head Review: PHINIA (NYSE:PHIN) vs. China Automotive Systems (NASDAQ:CAAS)

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

Institutional & Insider Ownership

5.2% of China Automotive Systems shares are owned by institutional investors. Comparatively, 90.9% of PHINIA shares are owned by institutional investors. 65.2% of China Automotive Systems shares are owned by company insiders. Comparatively, 1.5% of PHINIA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares China Automotive Systems and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Automotive Systems	6.82%	10.84%	5.34%
PHINIA	3.06%	7.52%	3.56%

Analyst Ratings

This is a summary of current ratings and target prices for China Automotive Systems and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Automotive Systems	0	0	0	0	N/A
PHINIA	0	0	2	0	3.00

PHINIA has a consensus price target of $43.00, indicating a potential upside of 9.47%. Given PHINIA’s higher probable upside, analysts clearly believe PHINIA is more favorable than China Automotive Systems.

Valuation & Earnings

This table compares China Automotive Systems and PHINIA’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Automotive Systems	$576.35 million	0.20	$37.66 million	$1.29	2.91
PHINIA	$3.53 billion	0.51	$102.00 million	N/A	N/A

PHINIA has higher revenue and earnings than China Automotive Systems.

Summary

PHINIA beats China Automotive Systems on 6 of the 10 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 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.