Financial Analysis: Mazda Motor (OTCMKTS:MZDAY) and RENAULT (OTCMKTS:RNLSY)

Mazda Motor (OTCMKTS:MZDAY) and RENAULT (OTCMKTS:RNLSY) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Mazda Motor and RENAULT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mazda Motor	1	1	1	0	2.00
RENAULT	1	1	0	1	2.33

Dividends

Mazda Motor pays an annual dividend of $0.14 per share and has a dividend yield of 3.8%. RENAULT pays an annual dividend of $0.30 per share and has a dividend yield of 3.7%. 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.

Profitability

This table compares Mazda Motor and RENAULT’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%
RENAULT	N/A	N/A	N/A

Risk and Volatility

Mazda Motor has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, RENAULT has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mazda Motor and RENAULT”s top-line revenue, earnings per share (EPS) and valuation.

	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	37.26
RENAULT	$60.85 billion	0.20	$150.41 million	N/A	N/A

Mazda Motor has higher earnings, but lower revenue than RENAULT.

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 RENAULT

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan. The company's Sale Financing segment offers sale financing, leasing, maintenance, and services contract under the Mobilize Financial Services brand. Its Mobility Services segment provides mobility and energy solutions for electric vehicle users under the Mobilize brand. In addition, it is also involved in the design, manufacture, and sale of passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands. Further, the company offers used vehicles and spare parts; and engages in business-to-business powertrain activities, and research and advanced engineering activities. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.