Toyota Motor (OTCMKTS: VLVLY) and VOLVO AB/ADR (OTCMKTS:VLVLY) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Valuation and Earnings
This table compares Toyota Motor and VOLVO AB/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Toyota Motor||$265.30 billion||0.70||$22.45 billion||$15.04||8.41|
|VOLVO AB/ADR||$39.24 billion||0.90||$2.46 billion||$1.23||14.20|
Risk and Volatility
Toyota Motor has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, VOLVO AB/ADR has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
Toyota Motor pays an annual dividend of $3.89 per share and has a dividend yield of 3.1%. VOLVO AB/ADR pays an annual dividend of $0.38 per share and has a dividend yield of 2.2%. Toyota Motor pays out 25.9% of its earnings in the form of a dividend. VOLVO AB/ADR pays out 30.9% 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. Toyota Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
0.8% of Toyota Motor shares are owned by institutional investors. Comparatively, 0.0% of VOLVO AB/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for Toyota Motor and VOLVO AB/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Toyota Motor presently has a consensus target price of $130.00, suggesting a potential upside of 2.79%. Given Toyota Motor’s higher possible upside, equities analysts plainly believe Toyota Motor is more favorable than VOLVO AB/ADR.
This table compares Toyota Motor and VOLVO AB/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Toyota Motor beats VOLVO AB/ADR on 9 of the 15 factors compared between the two stocks.
Toyota Motor Company Profile
Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates through Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius, Alphard, Vellfire, Sienta, RX-HV, Auris, Prius PHV, C-HR, LC, Camry, JPN TAXI, Avalon, Corolla HB, Crown, and Century names; fuel cell vehicles under the MIRAI and SORA names; and conventional engine vehicles, including subcompact and compact cars under the Corolla, Yaris, Vitz, Aygo, Prius C, Aqua, Passo, Roomy, Tank, Etios, Vios, AGYA, Rush, and Yaris iA names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars under the Camry, REIZ, and Avensis names; luxury cars under the Lexus, Avalon, and Crown names; Century limousines; sports cars under the 86, Scion FR-S, RC coupe, and LC names; and sport-utility vehicles under the Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser, and Land Cruiser names. In addition, the company offers pickup trucks under the Tacoma and Tundra names; minivans under the Alphard, Vellfire, Noah/Voxy, Esquire, Calya, Estima, Sienta, and Sienna names; large, medium, and small trucks; and large, medium, small, and micro-buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and manufactures and sells prefabricated housing. Additionally, the company engages in the information technology related businesses comprising operation of a Web portal for automobile information known as GAZOO.com. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.
VOLVO AB/ADR Company Profile
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, and internationally. The company offers trucks for long-haulage, construction, and distribution purposes under the Volvo, UD, Renault, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis under the Volvo, UD, Prevost, and Nova Bus brands. It also provides construction equipment, including excavators, wheel loaders and haulers, and road machinery under the brand names of Volvo, SDLG, and Terex Trucks. In addition, the company offers diesel engines for leisure boats; marine propulsion systems; drive systems and engines for propulsion and auxiliary equipment, and marine generator sets; and industrial engines for use in container terminals, mines, and other industrial applications under the Volvo Penta brand name. Further, it provides financial solutions, such as customer financing and leasing, dealer financing, and insurance; rental, preventive maintenance, assistance, and IT services; spare parts; and transport information systems. The company offers its products and services through a network of dealerships and workshops. AB Volvo (publ) was founded in 1915 and is headquartered in Gothenburg, Sweden.
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