Head to Head Comparison: Subaru (OTCMKTS:FUJHY) and Bayerische Motoren Werke (OTCMKTS:BAMXF)

Subaru (OTCMKTS:FUJHY) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Subaru and Bayerische Motoren Werke”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$30.77 billion	0.50	$2.23 billion	$1.41	7.45
Bayerische Motoren Werke	$154.09 billion	0.36	$7.89 billion	$10.07	9.58

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

Profitability

This table compares Subaru and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subaru	6.40%	11.48%	6.16%
Bayerische Motoren Werke	4.19%	6.07%	2.18%

Risk & Volatility

Subaru has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Subaru and Bayerische Motoren Werke, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	0	1	0	2.00
Bayerische Motoren Werke	0	3	0	1	2.50

Institutional and Insider Ownership

0.0% of Subaru shares are held 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.

Summary

Bayerische Motoren Werke beats Subaru on 7 of the 13 factors compared between the two stocks.

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.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft 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.