Toyota Motor (NYSE:TM) and General Motors (NYSE:GM) are both large-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Analyst Ratings
This is a breakdown of current ratings for Toyota Motor and General Motors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Toyota Motor | 1 | 0 | 2 | 0 | 2.33 |
General Motors | 1 | 1 | 17 | 0 | 2.84 |
General Motors has a consensus price target of $60.4211, suggesting a potential upside of 3.09%. Given General Motors' stronger consensus rating and higher possible upside, analysts clearly believe General Motors is more favorable than Toyota Motor.
Institutional & Insider Ownership
1.1% of Toyota Motor shares are owned by institutional investors. Comparatively, 77.7% of General Motors shares are owned by institutional investors. 0.7% of General Motors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Toyota Motor and General Motors' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Toyota Motor | $275.36 billion | 0.80 | $19.10 billion | $13.42 | 11.72 |
General Motors | $137.24 billion | 0.62 | $6.73 billion | $4.82 | 12.16 |
Toyota Motor has higher revenue and earnings than General Motors. Toyota Motor is trading at a lower price-to-earnings ratio than General Motors, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Toyota Motor has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, General Motors has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Profitability
This table compares Toyota Motor and General Motors' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Toyota Motor | 5.51% | 6.73% | 2.62% |
General Motors | 2.92% | 9.78% | 1.87% |
Summary
General Motors beats Toyota Motor on 8 of the 14 factors compared between the two stocks.