Toyota Motor (NYSE:TM) and The Shyft Group (NASDAQ:SHYF) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Profitability
This table compares Toyota Motor and The Shyft Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Toyota Motor | 5.51% | 6.73% | 2.62% |
| The Shyft Group | -0.39% | 28.06% | 12.97% |
Volatility & Risk
Toyota Motor has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, The Shyft Group has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Institutional & Insider Ownership
1.1% of Toyota Motor shares are held by institutional investors. Comparatively, 75.2% of The Shyft Group shares are held by institutional investors. 4.0% of The Shyft Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Toyota Motor and The Shyft Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Toyota Motor | 1 | 0 | 2 | 0 | 2.33 |
| The Shyft Group | 0 | 0 | 1 | 0 | 3.00 |
The Shyft Group has a consensus target price of $38.50, suggesting a potential downside of 0.21%. Given The Shyft Group's stronger consensus rating and higher possible upside, analysts plainly believe The Shyft Group is more favorable than Toyota Motor.
Dividends
Toyota Motor pays an annual dividend of $3.59 per share and has a dividend yield of 2.3%. The Shyft Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Toyota Motor pays out 26.8% of its earnings in the form of a dividend. The Shyft Group pays out 8.1% 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. The Shyft Group has increased its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Toyota Motor and The Shyft 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 | $275.36 billion | 0.78 | $19.10 billion | $13.42 | 11.50 |
| The Shyft Group | $756.54 million | 1.80 | $-12,570,000.00 | $1.24 | 31.11 |
Toyota Motor has higher revenue and earnings than The Shyft Group. Toyota Motor is trading at a lower price-to-earnings ratio than The Shyft Group, indicating that it is currently the more affordable of the two stocks.
Summary
The Shyft Group beats Toyota Motor on 10 of the 17 factors compared between the two stocks.
