Head-To-Head Review: Subaru (FUJHY) vs. The Competition

Subaru (OTCMKTS:FUJHY) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it compare to its rivals? We will compare Subaru to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. Subaru pays out 55.0% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 149.0% and pay out 7.2% of their earnings in the form of a dividend. Subaru lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Subaru and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Subaru	$31.79 billion	$599.56 million	20.72
Subaru Competitors	$53.20 billion	$1.13 billion	7.73

Subaru’s rivals have higher revenue and earnings than Subaru. Subaru is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Subaru and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subaru	1.77%	3.04%	1.58%
Subaru Competitors	-1,522.34%	-123.41%	-11.66%

Volatility and Risk

Subaru has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Subaru’s rivals have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Subaru shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are owned by institutional investors. 14.6% of shares of all “Automobiles” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Subaru and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	0	0	1.50
Subaru Competitors	2130	5136	6396	192	2.34

As a group, “Automobiles” companies have a potential upside of 65.11%. Given Subaru’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Subaru has less favorable growth aspects than its rivals.

Summary

Subaru rivals beat Subaru on 11 of the 15 factors compared.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.