Toyota Motor (NYSE:TM – Get Free Report) and Dongfeng Motor Group (OTCMKTS:DNFGY – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
Toyota Motor has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Dongfeng Motor Group has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.
Valuation and Earnings
This table compares Toyota Motor and Dongfeng Motor Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Toyota Motor | $336.70 billion | 0.68 | $25.40 billion | $19.58 | 8.97 |
| Dongfeng Motor Group | $14.77 billion | 0.65 | $8.07 million | N/A | N/A |
Toyota Motor has higher revenue and earnings than Dongfeng Motor Group.
Profitability
This table compares Toyota Motor and Dongfeng Motor Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Toyota Motor | 7.59% | 9.74% | 3.82% |
| Dongfeng Motor Group | N/A | N/A | N/A |
Dividends
Toyota Motor pays an annual dividend of $5.60 per share and has a dividend yield of 3.2%. Dongfeng Motor Group pays an annual dividend of $0.26 per share and has a dividend yield of 0.4%. Toyota Motor pays out 28.6% of its earnings in the form of a dividend.
Insider and Institutional Ownership
1.5% of Toyota Motor shares are held 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 recent recommendations and price targets for Toyota Motor and Dongfeng Motor Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toyota Motor | 0 | 4 | 2 | 2 | 2.75 |
| Dongfeng Motor Group | 0 | 0 | 0 | 1 | 4.00 |
Toyota Motor presently has a consensus target price of $290.00, indicating a potential upside of 65.12%. Given Toyota Motor’s higher probable upside, analysts clearly believe Toyota Motor is more favorable than Dongfeng Motor Group.
Summary
Toyota Motor beats Dongfeng Motor Group on 12 of the 14 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 Dongfeng Motor Group
Dongfeng Motor Group Company Limited engages in the research, development, manufacture, and sale of commercial and passenger vehicles, engines, and other auto parts in the People's Republic of China. It operates in four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. The company's commercial vehicles include light, medium, and heavy-duty trucks, as well as pickup trucks and buses; passenger vehicles comprise sedans, MPVs, and SUVs; electric and new energy vehicles, and special commercial vehicles; and other automobile related products, as well as automotive parts and components, and automobile equipment. It also provides investment and advisory, car maintenance and repair, insurance agency, automotive technology development and system integration, and logistics, as well as financing and loan services. In addition, it is involved in trading of used car. The company is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited operates as a subsidiary of Dongfeng Motor Corporation.
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