Reviewing Volkswagen (OTCMKTS:VWAGY) and Isuzu Motors (OTCMKTS:ISUZY)

Volkswagen (OTCMKTS:VWAGY) and Isuzu Motors (OTCMKTS:ISUZY) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Volkswagen and Isuzu Motors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volkswagen	0	5	1	1	2.43
Isuzu Motors	0	0	0	0	0.00

Dividends

Volkswagen pays an annual dividend of $0.45 per share and has a dividend yield of 3.7%. Isuzu Motors pays an annual dividend of $0.96 per share and has a dividend yield of 7.1%. Volkswagen pays out 24.9% of its earnings in the form of a dividend. Isuzu Motors pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Volkswagen and Isuzu Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volkswagen	2.57%	4.21%	1.31%
Isuzu Motors	3.99%	8.15%	4.05%

Volatility & Risk

Volkswagen has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Isuzu Motors has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares Volkswagen and Isuzu Motors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volkswagen	$351.35 billion	0.17	$12.28 billion	$1.81	6.74
Isuzu Motors	$21.07 billion	0.46	$886.80 million	$1.20	11.31

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

Summary

Volkswagen beats Isuzu Motors on 8 of the 14 factors compared between the two stocks.

About Volkswagen

Volkswagen AG manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles, and related parts; and offers motorcycles. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services. It sells its products under the Volkswagen Passenger Cars, koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brands. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

About Isuzu Motors

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, and SUVs; and marine and industrial engines. The company also supplies diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and logistics management activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Yokohama-shi, Japan.