Head-To-Head Contrast: Toyota Motor (NYSE:TM) & Suzuki Motor (OTCMKTS:SZKMY)

Suzuki Motor (OTCMKTS:SZKMY) and Toyota Motor (NYSE:TM) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Suzuki Motor and Toyota Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzuki Motor	0	0	0	2	4.00
Toyota Motor	1	2	1	0	2.00

Volatility and Risk

Suzuki Motor has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Suzuki Motor shares are owned by institutional investors. Comparatively, 1.5% of Toyota Motor shares are owned by institutional investors. 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.

Valuation & Earnings

This table compares Suzuki Motor and Toyota Motor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzuki Motor	$38.25 billion	0.58	$2.75 billion	$5.66	7.99
Toyota Motor	$48,036.70 billion	0.00	$31.45 billion	$22.62	7.53

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

Profitability

This table compares Suzuki Motor and Toyota Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzuki Motor	7.14%	11.50%	7.01%
Toyota Motor	9.89%	13.01%	5.11%

Dividends

Suzuki Motor pays an annual dividend of $0.79 per share and has a dividend yield of 1.7%. Toyota Motor pays an annual dividend of $6.16 per share and has a dividend yield of 3.6%. Suzuki Motor pays out 14.0% of its earnings in the form of a dividend. Toyota Motor pays out 27.2% 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.

Summary

Toyota Motor beats Suzuki Motor on 9 of the 15 factors compared between the two stocks.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.