BYD (OTCMKTS:BYDDY) versus Subaru (OTCMKTS:FUJHY) Head-To-Head Comparison

Subaru (OTCMKTS:FUJHY) 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 dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Risk and Volatility

Subaru has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, BYD has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Subaru and BYD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	1	0	2.00
BYD	0	3	0	0	2.00

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$30.77 billion	0.37	$2.23 billion	$0.50	15.98
BYD	$108.10 billion	N/A	$5.60 billion	$0.71	18.44

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

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.8%. BYD pays an annual dividend of $0.15 per share and has a dividend yield of 1.1%. Subaru pays out 44.0% of its earnings in the form of a dividend. BYD pays out 21.1% 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.

Institutional and Insider Ownership

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

Profitability

This table compares Subaru and BYD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subaru	2.27%	3.87%	2.06%
BYD	N/A	N/A	N/A

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.

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.