China Recycling Energy (NASDAQ:CREG) & CDK Global (CDK) Head to Head Analysis

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China Recycling Energy (NASDAQ:CREG) and CDK Global (NASDAQ:CDK) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Dividends

CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. China Recycling Energy does not pay a dividend. CDK Global pays out 19.7% of its earnings in the form of a dividend. CDK Global has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares China Recycling Energy and CDK Global’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Recycling Energy $4.89 million 2.12 -$66.00 million N/A N/A
CDK Global $2.27 billion 2.99 $380.80 million $3.04 18.36

CDK Global has higher revenue and earnings than China Recycling Energy.

Profitability

This table compares China Recycling Energy and CDK Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Recycling Energy N/A -51.38% -31.81%
CDK Global 16.34% -113.53% 15.00%

Risk & Volatility

China Recycling Energy has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, CDK Global has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

2.2% of China Recycling Energy shares are owned by institutional investors. Comparatively, 82.2% of CDK Global shares are owned by institutional investors. 33.2% of China Recycling Energy shares are owned by company insiders. Comparatively, 0.5% of CDK Global shares are owned by company 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.

Analyst Ratings

This is a summary of current ratings and target prices for China Recycling Energy and CDK Global, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Recycling Energy 0 0 0 0 N/A
CDK Global 0 2 2 0 2.50

CDK Global has a consensus target price of $69.67, suggesting a potential upside of 24.85%. Given CDK Global’s higher possible upside, analysts plainly believe CDK Global is more favorable than China Recycling Energy.

Summary

CDK Global beats China Recycling Energy on 10 of the 14 factors compared between the two stocks.

China Recycling Energy Company Profile

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. The company offers waste pressure-to-energy solutions, including the blast furnace top gas recovery turbine unit, a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generates electricity; and waste heat-to-energy solutions, such as heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries, which collect the residual heat from various manufacturing processes. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas from coal mining, petroleum exploitation, refinery processing, or other sources as a fuel source to generate electricity; and the combined cycle power plant, which employs power generating cycle to utilize the waste gas that generates electricity by burning the flammable waste gas in a gas turbine, as well as uses the waste heat from burning the gas to make steam to generate additional electricity through a steam turbine. In addition, the company offers biomass power generation systems (BMPG); and waste heat power generation (WHPG) systems; and project investment, investment management, economic information consulting, technical, and financial leasing services, as well as leases energy saving systems and equipment. As of December 31, 2017, it had five recycling WHPG systems and four BMPG systems. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. China Recycling Energy Corporation was incorporated in 1980 and is headquartered in Xi’an, China.

CDK Global Company Profile

CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers advertising solutions, such as the management of digital advertising spend for automotive retailers, automotive retailer associations, and OEMs; and professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 28,000 retail locations and OEMs. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.

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