Toyota Motor (TM) Competitors

Ferrari (NYSE:RACE) and Toyota Motor (NYSE:TM) are both large-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their media sentiment, analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Does the media prefer RACE or TM?

In the previous week, Ferrari had 27 more articles in the media than Toyota Motor. MarketBeat recorded 42 mentions for Ferrari and 15 mentions for Toyota Motor. Toyota Motor's average media sentiment score of 0.69 beat Ferrari's score of 0.66 indicating that Toyota Motor is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ferrari	19 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	6 Negative mention(s)	2 Very Negative mention(s)	Positive
Toyota Motor	8 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Do analysts recommend RACE or TM?

Ferrari presently has a consensus target price of $526.25, indicating a potential upside of 14.30%. Given Ferrari's stronger consensus rating and higher probable upside, analysts clearly believe Ferrari is more favorable than Toyota Motor.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	1 Sell rating(s)	1 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.67
Toyota Motor	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is RACE or TM a better dividend stock?

Ferrari pays an annual dividend of $0.5150 per share and has a dividend yield of 0.1%. Toyota Motor pays an annual dividend of $6.16 per share and has a dividend yield of 3.2%. Ferrari pays out 5.3% of its earnings in the form of a dividend. Toyota Motor pays out 29.7% 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. Ferrari has increased its dividend for 4 consecutive years.

Is RACE or TM more profitable?

Ferrari has a net margin of 22.95% compared to Toyota Motor's net margin of 8.77%. Ferrari's return on equity of 45.41% beat Toyota Motor's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ferrari	22.95%	45.41%	16.72%
Toyota Motor	8.77%	11.63%	4.58%

Which has more volatility & risk, RACE or TM?

Ferrari has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Which has preferable valuation and earnings, RACE or TM?

Toyota Motor has higher revenue and earnings than Ferrari. Toyota Motor is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrari	$6.96B	16.04	$1.65B	$9.69	47.51
Toyota Motor	$315.45B	0.83	$31.45B	$20.74	9.33

Do insiders and institutionals believe in RACE or TM?

1.5% of Toyota Motor shares are held 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.

Summary

Ferrari beats Toyota Motor on 12 of the 18 factors compared between the two stocks.