Critical Review: Bayerische Motoren Werke (BAMXF) and Its Peers

Bayerische Motoren Werke (OTCMKTS:BAMXF) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it compare to its peers? We will compare Bayerische Motoren Werke to related businesses based on the strength of its dividends, profitability, risk, analyst recommendations, earnings, institutional ownership and valuation.

Risk & Volatility

Bayerische Motoren Werke has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke’s peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	4.92%	6.51%	2.39%
Bayerische Motoren Werke Competitors	-1,522.44%	-125.00%	-11.47%

Institutional and Insider Ownership

39.1% of shares of all “Automobiles” companies are owned by institutional investors. 13.9% of shares of all “Automobiles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Bayerische Motoren Werke and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bayerische Motoren Werke	$150.95 billion	$8.25 billion	5.12
Bayerische Motoren Werke Competitors	$53.44 billion	$1.13 billion	6.68

Bayerische Motoren Werke has higher revenue and earnings than its peers. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bayerische Motoren Werke and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	1	3	0	1	2.20
Bayerische Motoren Werke Competitors	2040	5033	6306	186	2.34

As a group, “Automobiles” companies have a potential upside of 75.32%. Given Bayerische Motoren Werke’s peers stronger consensus rating and higher possible upside, analysts plainly believe Bayerische Motoren Werke has less favorable growth aspects than its peers.

Summary

Bayerische Motoren Werke peers beat Bayerische Motoren Werke on 7 of the 13 factors compared.

Bayerische Motoren Werke Company Profile

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.