Boyd Group Services (OTCMKTS:BYDGF) and Zhongsheng Group (OTCMKTS:ZSHGY) Critical Analysis

Boyd Group Services (OTCMKTS:BYDGF) and Zhongsheng Group (OTCMKTS:ZSHGY) are both consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Boyd Group Services and Zhongsheng Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boyd Group Services	1.93%	7.61%	2.63%
Zhongsheng Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Boyd Group Services and Zhongsheng Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boyd Group Services	$2.95 billion	1.11	$86.66 million	$3.45	44.14
Zhongsheng Group	N/A	N/A	N/A	$5.36	2.87

Boyd Group Services has higher revenue and earnings than Zhongsheng Group. Zhongsheng Group is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.

Dividends

Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Zhongsheng Group pays an annual dividend of $0.87 per share and has a dividend yield of 5.7%. Boyd Group Services pays out 12.8% of its earnings in the form of a dividend. Zhongsheng Group pays out 16.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

0.2% of Boyd Group Services shares are owned by institutional investors. Comparatively, 0.0% of Zhongsheng Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Boyd Group Services and Zhongsheng Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Group Services	1	0	0	2	3.00
Zhongsheng Group	0	0	0	0	N/A

Summary

Boyd Group Services beats Zhongsheng Group on 8 of the 10 factors compared between the two stocks.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.

About Zhongsheng Group

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in the People's Republic of China. The company operates 4S dealerships for various automobile brands consisting of luxury automobile brands, including Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, and Volvo; and mid-to-high end automobile brands, such as Toyota, Honda, and Nissan. It also provides spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services. The company was founded in 1998 and is headquartered in Dalian, the People's Republic of China.