Comparing Suzuki Motor (OTCMKTS:SZKMY) and Volkswagen (OTCMKTS:VWAGY)

Suzuki Motor (OTCMKTS:SZKMY) and Volkswagen (OTCMKTS:VWAGY) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Suzuki Motor and Volkswagen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzuki Motor	7.01%	11.10%	6.82%
Volkswagen	2.57%	4.21%	1.31%

Earnings & Valuation

This table compares Suzuki Motor and Volkswagen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzuki Motor	$38.25 billion	0.77	$2.75 billion	$5.60	10.75
Volkswagen	$351.35 billion	0.16	$12.28 billion	$1.81	6.08

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

Dividends

Suzuki Motor pays an annual dividend of $0.79 per share and has a dividend yield of 1.3%. Volkswagen pays an annual dividend of $0.45 per share and has a dividend yield of 4.1%. Suzuki Motor pays out 14.1% of its earnings in the form of a dividend. Volkswagen pays out 24.9% 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.

Volatility & Risk

Suzuki Motor has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Volkswagen has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Suzuki Motor and Volkswagen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzuki Motor	1	0	0	2	3.00
Volkswagen	0	4	1	0	2.20

Institutional and Insider Ownership

0.0% of Suzuki Motor shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Suzuki Motor beats Volkswagen on 10 of the 15 factors compared between the two stocks.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.

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.