Metaldyne Performance Group (MPG) vs. China XD Plastics Company Limited (CXDC) Head-To-Head Analysis

China XD Plastics Company Limited (NASDAQ: CXDC) and Metaldyne Performance Group (NYSE:MPG) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitabiliy, analyst recommendations, institutional ownership and risk.

Profitability

This table compares China XD Plastics Company Limited and Metaldyne Performance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China XD Plastics Company Limited	8.18%	16.99%	5.65%
Metaldyne Performance Group	2.60%	9.80%	2.11%

Analyst Recommendations

This is a breakdown of current ratings and price targets for China XD Plastics Company Limited and Metaldyne Performance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China XD Plastics Company Limited	0	0	0	0	N/A
Metaldyne Performance Group	0	3	0	0	2.00

Metaldyne Performance Group has a consensus target price of $18.67, indicating a potential downside of 14.76%. Given Metaldyne Performance Group’s higher possible upside, analysts clearly believe Metaldyne Performance Group is more favorable than China XD Plastics Company Limited.

Dividends

Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. China XD Plastics Company Limited does not pay a dividend. Metaldyne Performance Group pays out 25.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares China XD Plastics Company Limited and Metaldyne Performance Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
China XD Plastics Company Limited	$1.22 billion	0.19	$201.58 million	$1.53	3.01
Metaldyne Performance Group	N/A	N/A	N/A	$1.44	15.21

China XD Plastics Company Limited has higher revenue and earnings than Metaldyne Performance Group. China XD Plastics Company Limited is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

China XD Plastics Company Limited has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500. Comparatively, Metaldyne Performance Group has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500.

Insider and Institutional Ownership

11.4% of China XD Plastics Company Limited shares are owned by institutional investors. Comparatively, 18.6% of Metaldyne Performance Group shares are owned by institutional investors. 66.3% of China XD Plastics Company Limited shares are owned by insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

China XD Plastics Company Limited beats Metaldyne Performance Group on 8 of the 11 factors compared between the two stocks.

About China XD Plastics Company Limited

China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).

About Metaldyne Performance Group

Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.