Toyota Motor (NYSE:TM – Get Free Report) and Geely Automobile (OTCMKTS:GELYF – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Institutional and Insider Ownership
1.5% of Toyota Motor shares are owned by institutional investors. Comparatively, 14.9% of Geely Automobile shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Toyota Motor and Geely Automobile, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toyota Motor | 0 | 4 | 1 | 2 | 2.71 |
| Geely Automobile | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Toyota Motor and Geely Automobile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Toyota Motor | 8.61% | 11.21% | 4.34% |
| Geely Automobile | N/A | N/A | N/A |
Dividends
Toyota Motor pays an annual dividend of $5.60 per share and has a dividend yield of 2.8%. Geely Automobile pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Toyota Motor pays out 24.7% of its earnings in the form of a dividend. Geely Automobile pays out 13.6% 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.
Earnings and Valuation
This table compares Toyota Motor and Geely Automobile”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Toyota Motor | $336.70 billion | 0.76 | $25.40 billion | $22.68 | 8.71 |
| Geely Automobile | N/A | N/A | N/A | $0.27 | 8.80 |
Toyota Motor has higher revenue and earnings than Geely Automobile. Toyota Motor is trading at a lower price-to-earnings ratio than Geely Automobile, indicating that it is currently the more affordable of the two stocks.
Summary
Toyota Motor beats Geely Automobile on 10 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 Geely Automobile
Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People's Republic of China. The company engages in the research and development, production, marketing, and sale of passenger vehicles, automobile parts, and related automobile components, as well as provision of related after-sales and technical services. It also offers sedans, wagons, sport utility cars, and electric vehicles under the Geely, Geometry, and ZEEKR brands; vehicles design, technology consulting, general logistics, packing, and storage services; researches and develops technology; procures mechanical and electrical equipment, and automobile parts and components; and manufactures and sells vehicle engines. In addition, the company provides automotive design, software systems development, modular development, virtual engineering of intelligent electric vehicles, and mobility technology solutions; knock down kits; and engages in the preparation and construction of engine manufactory projects. It operates in Malaysia, Eastern Europe, the Middle East, Northern Europe, the Philippines, Central and South America, Africa, and internationally. Geely Automobile Holdings Limited is headquartered in Wan Chai, Hong Kong.
Receive News & Ratings for Toyota Motor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toyota Motor and related companies with MarketBeat.com's FREE daily email newsletter.
