Head to Head Contrast: Mercedes-Benz Group (OTCMKTS:MBGYY) and Mazda Motor (OTCMKTS:MZDAY)

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

Risk & Volatility

Mercedes-Benz Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Mazda Motor has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mercedes-Benz Group and Mazda Motor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.36	$11.05 billion	C$3.29	4.51
Mazda Motor	$32.96 billion	0.14	$752.92 million	$0.10	36.80

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	4.85%	7.35%	2.55%
Mazda Motor	0.39%	3.36%	1.51%

Dividends

Mercedes-Benz Group pays an annual dividend of C$0.81 per share and has a dividend yield of 5.5%. Mazda Motor pays an annual dividend of $0.14 per share and has a dividend yield of 3.8%. Mercedes-Benz Group pays out 24.6% of its earnings in the form of a dividend. 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. Mercedes-Benz Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Mercedes-Benz Group and Mazda Motor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	5	0	0	2.00
Mazda Motor	1	1	1	0	2.00

Summary

Mercedes-Benz Group beats Mazda Motor on 10 of the 12 factors compared between the two stocks.

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.

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.