Critical Review: Mitsubishi Motors (MMTOF) vs. The Competition

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

Profitability

This table compares Mitsubishi Motors and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Motors	N/A	N/A	N/A
Mitsubishi Motors Competitors	-1,371.68%	-100.36%	-10.38%

Institutional & Insider Ownership

9.8% of Mitsubishi Motors shares are held by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are held by institutional investors. 13.9% of shares of all “Automobiles” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Mitsubishi Motors and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Motors	N/A	N/A	0.02
Mitsubishi Motors Competitors	$53.42 billion	$1.13 billion	5.47

Mitsubishi Motors’ rivals have higher revenue and earnings than Mitsubishi Motors. Mitsubishi Motors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Mitsubishi Motors pays an annual dividend of $17.92 per share and has a dividend yield of 716.8%. Mitsubishi Motors pays out 12.8% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 111.3% and pay out 7.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Mitsubishi Motors and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Motors	1	0	0	0	1.00
Mitsubishi Motors Competitors	2031	5019	6299	184	2.34

As a group, “Automobiles” companies have a potential upside of 82.47%. Given Mitsubishi Motors’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Mitsubishi Motors has less favorable growth aspects than its rivals.

Summary

Mitsubishi Motors rivals beat Mitsubishi Motors on 9 of the 13 factors compared.

Mitsubishi Motors Company Profile

Mitsubishi Motors Corporation, together with its subsidiaries, engages in the development, production, and sale of passenger vehicles, and its parts and components in Japan, Europe, North America, Oceania, the rest of Asia, and internationally. Its products include EVs/PHEVs, SUVs, pickup trucks, MPVs, and cars under the Mitsubishi brand. It is also involved in automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; and manufacturing of automobile engines and transmissions, and press parts. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.