Subaru (OTCMKTS: FUJHY) and Nissan Motor (OTCMKTS:NSANY) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for Subaru and Nissan Motor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility and Risk
Subaru has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Nissan Motor has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Earnings & Valuation
This table compares Subaru and Nissan Motor’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Subaru||$29.24 billion||0.86||$2.63 billion||$1.19||13.73|
|Nissan Motor||$108.41 billion||0.38||$6.17 billion||$3.75||5.57|
Nissan Motor has higher revenue and earnings than Subaru. Nissan Motor is trading at a lower price-to-earnings ratio than Subaru, indicating that it is currently the more affordable of the two stocks.
Subaru pays an annual dividend of $0.25 per share and has a dividend yield of 1.5%. Nissan Motor pays an annual dividend of $0.83 per share and has a dividend yield of 4.0%. Subaru pays out 21.0% of its earnings in the form of a dividend. Nissan Motor pays out 22.1% 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.
This table compares Subaru and Nissan Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
0.1% of Subaru shares are owned by institutional investors. Comparatively, 0.1% of Nissan Motor shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Nissan Motor beats Subaru on 7 of the 13 factors compared between the two stocks.
SUBARU CORPORATION, formerly Fuji Heavy Industries Ltd., is a manufacturer of Subaru automobiles. The Company’s segments include Automobiles, Aerospace, Industrial products and Other. The Automobile segment manufactures and sells vehicles and related products. The Aerospace segment manufactures aircrafts, parts of space-related devices. The Industrial products segment manufactures and sells Robin engines and related products. The Other segment consists of garbage collection vehicles, specialized vehicles and real estate lease. It offers a platform, called the Subaru Global Platform, which is a Subaru technology for unifying development of all of its models under a single platform design. It manufactures, repairs and sells airplanes aerospace-related machinery and their components. It also manufactures, sells and repairs generators, engine-equipped machinery, agricultural machinery, construction machinery other machine tools and their components.
About Nissan Motor
Nissan Motor Co., Ltd. is engaged in manufacturing, sales and related business of automotive products and marine equipment. The Company’s segments include Automobile and Sales Financing. The Automobile business includes manufacturing and sales of vehicles and parts. The Sales financing business provides sales finance service and leasing to support sales activities of the automobile business. The Company manufactures vehicles in approximately 20 countries and areas around the world, including Japan. The Company offers products and services in over 160 countries and areas across the world. The Company sells approximately 60 models under the Nissan, Infiniti and Datsun brands. The Company has geographic operations in various countries, which include North America, Europe, Asia and Other overseas countries.
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