Head-To-Head Contrast: Guangzhou Automobile Group (OTCMKTS:GNZUF) and Mazda Motor (OTCMKTS:MZDAY)

Guangzhou Automobile Group (OTCMKTS:GNZUF) and Mazda Motor (OTCMKTS:MZDAY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Guangzhou Automobile Group and Mazda Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guangzhou Automobile Group	N/A	N/A	N/A
Mazda Motor	0.62%	5.58%	2.43%

Earnings & Valuation

This table compares Guangzhou Automobile Group and Mazda Motor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guangzhou Automobile Group	N/A	N/A	N/A	$0.49	0.53
Mazda Motor	$32.67 billion	0.14	$231.57 million	$0.16	22.56

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

Institutional and Insider Ownership

14.0% of Guangzhou Automobile Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Guangzhou Automobile Group and Mazda Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guangzhou Automobile Group	0	0	0	0	0.00
Mazda Motor	0	2	1	0	2.33

Dividends

Guangzhou Automobile Group pays an annual dividend of $0.06 per share and has a dividend yield of 22.9%. Mazda Motor pays an annual dividend of $0.11 per share and has a dividend yield of 3.0%. Guangzhou Automobile Group pays out 12.2% of its earnings in the form of a dividend. Mazda Motor pays out 68.8% 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. Guangzhou Automobile Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Mazda Motor beats Guangzhou Automobile Group on 7 of the 11 factors compared between the two stocks.

About Guangzhou Automobile Group

Guangzhou Automobile Group Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of vehicles and motorcycles, and parts and components; and provision of commercial and financial services in Mainland China and internationally. The company operates through two segments, Vehicles and Related Operations, and Others. It offers large to medium sized passenger vehicles, light and heavy trucks, construction vehicles, and energy vehicles; motorcycles comprising standard motorcycles, sport bikes, scooters, etc.; and auto-parts and components, including engines, gearboxes, car seats, micro motors, shifters, electric controllers, and interior and exterior decorations. The company also provides financial investment, insurance, insurance brokerage, financial leasing, automobile credit, and other related services; and engages in the businesses of vehicle sales, logistics, international trading, second-hand vehicles, end-of-life vehicles disassembling, resources recycling, supporting services, digitalization and mobility transportation services, etc. In addition, it offers investment management services; and engages in the trade of steel. The company was incorporated in 1997 and is headquartered in Guangzhou, the People's Republic of China. Guangzhou Automobile Group Co., Ltd. is a subsidiary of Guangzhou Automobile Industry Group Co., Ltd.

About Mazda Motor

Mazda Motor Corporation engages in the manufacture and sale of passenger cars and commercial vehicles in Japan, China, North America, Europe, and internationally. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was incorporated in 1920 and is headquartered in Hiroshima, Japan.