Mazda Motor (OTCMKTS:MZDAY – Get Free Report) and Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Dividends
Mazda Motor pays an annual dividend of $0.14 per share and has a dividend yield of 3.7%. Mercedes-Benz Group pays an annual dividend of C$0.81 per share and has a dividend yield of 5.3%. Mazda Motor pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mercedes-Benz Group pays out 24.6% of its earnings in the form of a dividend. Mercedes-Benz Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Mazda Motor and Mercedes-Benz Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mazda Motor | 1 | 1 | 1 | 0 | 2.00 |
| Mercedes-Benz Group | 0 | 5 | 0 | 0 | 2.00 |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mazda Motor | $32.96 billion | 0.14 | $752.92 million | $0.10 | 37.83 |
| Mercedes-Benz Group | $157.56 billion | 0.37 | $11.05 billion | C$3.29 | 4.61 |
Mercedes-Benz Group has higher revenue and earnings than Mazda Motor. Mercedes-Benz Group is trading at a lower price-to-earnings ratio than Mazda Motor, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Mazda Motor has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Profitability
This table compares Mazda Motor and Mercedes-Benz Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mazda Motor | 0.39% | 3.36% | 1.51% |
| Mercedes-Benz Group | 4.85% | 7.35% | 2.55% |
Summary
Mercedes-Benz Group beats Mazda Motor on 10 of the 12 factors compared between the two stocks.
About Mazda Motor
Mazda Motor Corporation engages in the manufacture and sale of passenger cars and commercial vehicles in Japan, China, North America, Europe, and internationally. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was incorporated in 1920 and is headquartered in Hiroshima, Japan.
About Mercedes-Benz Group
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
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