Reviewing Nomura Research Institute (OTCMKTS:NRILY) and Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BMWYY)

Nomura Research Institute (OTCMKTS:NRILY) and Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BMWYY) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Nomura Research Institute and Bayerische Motoren Werke Aktiengesellschaft”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura Research Institute	$5.10 billion	4.70	$549.54 million	$1.08	38.23
Bayerische Motoren Werke Aktiengesellschaft	$168.28 billion	0.31	$12.22 billion	$6.06	4.82

Bayerische Motoren Werke Aktiengesellschaft has higher revenue and earnings than Nomura Research Institute. Bayerische Motoren Werke Aktiengesellschaft is trading at a lower price-to-earnings ratio than Nomura Research Institute, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.0% of Bayerische Motoren Werke Aktiengesellschaft shares are held by institutional investors. 61.1% of Nomura Research Institute shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nomura Research Institute and Bayerische Motoren Werke Aktiengesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomura Research Institute	0	1	0	0	2.00
Bayerische Motoren Werke Aktiengesellschaft	1	1	1	1	2.50

Dividends

Nomura Research Institute pays an annual dividend of $0.26 per share and has a dividend yield of 0.6%. Bayerische Motoren Werke Aktiengesellschaft pays an annual dividend of $1.56 per share and has a dividend yield of 5.3%. Nomura Research Institute pays out 24.1% of its earnings in the form of a dividend. Bayerische Motoren Werke Aktiengesellschaft pays out 25.7% 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.

Profitability

This table compares Nomura Research Institute and Bayerische Motoren Werke Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomura Research Institute	11.96%	21.78%	9.99%
Bayerische Motoren Werke Aktiengesellschaft	6.90%	11.39%	4.19%

Risk and Volatility

Nomura Research Institute has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke Aktiengesellschaft has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

Bayerische Motoren Werke Aktiengesellschaft beats Nomura Research Institute on 9 of the 16 factors compared between the two stocks.

About Nomura Research Institute

Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solution, industrial IT solution, and IT platform services in Japan and internationally. Its Consulting segment offers management, operational, and system consulting services for enterprises and government agencies. This segment also offers research, future projections, and recommendations to society, economics, business, technology, etc. The company's Financial IT Solutions segment provides system consulting, development, and management solutions, as well as shared online and BPO services for the financial institutions, including the securities, insurance, banking, asset management, and other financial sectors. Its Industrial IT Solutions segment offers system consulting, development, and management solutions, as well as shared online services primarily for the distribution, manufacturing, service, and public sectors. The company's IT Platform Services segment engages in the data center operation activities and construction of IT platforms and networks to the Financial IT and Industrial IT Solutions segments, as well as provides IT platform solutions and information security services to external clients. This segment is also involved in the research related to advance IT, etc. The company was founded in 1965 and is headquartered in Tokyo, Japan.

About Bayerische Motoren Werke Aktiengesellschaft

Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.