Bayerische Motoren Werke (OTCMKTS:BAMXF) vs. Toyota Motor (NYSE:TM) Critical Review

Toyota Motor (NYSE:TM) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares Toyota Motor and Bayerische Motoren Werke”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$49,385.01 billion	0.01	$31.45 billion	$22.69	8.90
Bayerische Motoren Werke	$154.09 billion	0.37	$7.89 billion	$10.07	9.83

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

Analyst Ratings

This is a breakdown of current recommendations for Toyota Motor and Bayerische Motoren Werke, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	2	2	3	0	2.14
Bayerische Motoren Werke	0	3	0	1	2.50

Risk & Volatility

Toyota Motor has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

1.5% of Toyota Motor shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Toyota Motor and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	8.77%	11.63%	4.58%
Bayerische Motoren Werke	5.14%	7.58%	2.72%

Summary

Toyota Motor beats Bayerische Motoren Werke on 9 of the 13 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.