Financial Survey: Toyota Motor (NYSE:TM) vs. Renault (OTCMKTS:RNLSY)

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

Institutional and Insider Ownership

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

Dividends

Toyota Motor pays an annual dividend of $6.16 per share and has a dividend yield of 3.1%. Renault pays an annual dividend of $0.30 per share and has a dividend yield of 3.8%. Toyota Motor pays out 27.1% of its earnings in the form of a dividend.

Profitability

This table compares Toyota Motor and Renault’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%
Renault	N/A	N/A	N/A

Valuation and Earnings

This table compares Toyota Motor and Renault”s gross revenue, earnings per share (EPS) 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	8.63
Renault	$60.85 billion	0.19	$150.41 million	N/A	N/A

Toyota Motor has higher revenue and earnings than Renault.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Toyota Motor and Renault, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	2	2	3	0	2.14
Renault	0	2	0	1	2.67

Volatility and Risk

Toyota Motor has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Renault has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Summary

Toyota Motor beats Renault on 7 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 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.