Financial Comparison: Isuzu Motors (OTCMKTS:ISUZY) & Subaru (OTCMKTS:FUJHY)

Isuzu Motors (OTCMKTS:ISUZY) and Subaru (OTCMKTS:FUJHY) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Isuzu Motors and Subaru, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Isuzu Motors	0	0	0	0	0.00
Subaru	1	0	1	0	2.00

Volatility & Risk

Isuzu Motors has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Subaru has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Valuation and Earnings

This table compares Isuzu Motors and Subaru”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Isuzu Motors	$21.07 billion	0.44	$886.80 million	$1.20	10.83
Subaru	$30.77 billion	0.49	$2.23 billion	$1.41	7.34

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

Institutional and Insider Ownership

0.0% of Subaru shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Isuzu Motors pays an annual dividend of $0.43 per share and has a dividend yield of 3.3%. Subaru pays an annual dividend of $0.33 per share and has a dividend yield of 3.2%. Isuzu Motors pays out 35.8% of its earnings in the form of a dividend. Subaru pays out 23.4% 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 Isuzu Motors and Subaru’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Isuzu Motors	3.99%	8.16%	3.99%
Subaru	6.40%	11.48%	6.16%

Summary

Subaru beats Isuzu Motors on 11 of the 14 factors compared between the two stocks.

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.

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.