Financial Comparison: RENAULT (OTCMKTS:RNLSY) vs. Mercedes-Benz Group (OTCMKTS:MBGYY)

RENAULT (OTCMKTS:RNLSY) and Mercedes-Benz Group (OTCMKTS:MBGYY) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares RENAULT and Mercedes-Benz Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RENAULT	$60.85 billion	0.19	$150.41 million	N/A	N/A
Mercedes-Benz Group	$157.56 billion	0.38	$11.05 billion	C$3.29	4.69

Mercedes-Benz Group has higher revenue and earnings than RENAULT.

Profitability

This table compares RENAULT and Mercedes-Benz Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RENAULT	N/A	N/A	N/A
Mercedes-Benz Group	4.85%	7.24%	2.57%

Risk & Volatility

RENAULT has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Dividends

RENAULT pays an annual dividend of $0.30 per share and has a dividend yield of 3.8%. Mercedes-Benz Group pays an annual dividend of C$0.81 per share and has a dividend yield of 5.3%. Mercedes-Benz Group pays out 24.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for RENAULT and Mercedes-Benz Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RENAULT	0	2	0	1	2.67
Mercedes-Benz Group	0	6	0	0	2.00

Summary

Mercedes-Benz Group beats RENAULT on 7 of the 11 factors compared between the two stocks.

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.

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.