Contrasting NIO (NYSE:NIO) and Bayerische Motoren Werke (OTCMKTS:BAMXF)

NIO (NYSE:NIO) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares NIO and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-35.51%	-286.45%	-23.51%
Bayerische Motoren Werke	4.19%	6.07%	2.18%

Valuation and Earnings

This table compares NIO and Bayerische Motoren Werke”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$9.01 billion	1.18	-$3.06 billion	($1.62)	-3.13
Bayerische Motoren Werke	$154.09 billion	0.39	$7.89 billion	$10.07	10.25

Bayerische Motoren Werke has higher revenue and earnings than NIO. NIO is trading at a lower price-to-earnings ratio than Bayerische Motoren Werke, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

NIO has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NIO and Bayerische Motoren Werke, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	1	9	2	1	2.23
Bayerische Motoren Werke	0	3	0	1	2.50

NIO currently has a consensus price target of $4.7571, indicating a potential downside of 6.26%. Given NIO’s higher probable upside, research analysts clearly believe NIO is more favorable than Bayerische Motoren Werke.

Insider & Institutional Ownership

48.6% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. 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.

Summary

Bayerische Motoren Werke beats NIO on 8 of the 14 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.