Reviewing Mazda Motor (OTCMKTS:MZDAY) and BYD (OTCMKTS:BYDDY)

Mazda Motor (OTCMKTS:MZDAY) and BYD (OTCMKTS:BYDDY) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider and Institutional Ownership

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

Dividends

Mazda Motor pays an annual dividend of $0.14 per share and has a dividend yield of 4.0%. BYD pays an annual dividend of $0.15 per share and has a dividend yield of 1.1%. 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. BYD pays out 21.1% of its earnings in the form of a dividend.

Volatility & Risk

Mazda Motor has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, BYD has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Mazda Motor and BYD’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%
BYD	5.71%	22.70%	5.86%

Valuation and Earnings

This table compares Mazda Motor and BYD”s 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	35.40
BYD	$108.10 billion	1.14	$5.60 billion	$0.71	19.42

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

Analyst Recommendations

This is a summary of recent recommendations for Mazda Motor and BYD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mazda Motor	1	1	1	0	2.00
BYD	0	2	0	0	2.00

Summary

BYD beats Mazda Motor on 9 of the 13 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 BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.