Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BAMXF) and Rakuten (OTCMKTS:RKUNY) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Insider and Institutional Ownership
0.1% of Rakuten shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Bayerische Motoren Werke Aktiengesellschaft and Rakuten's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Bayerische Motoren Werke Aktiengesellschaft | $116.72 billion | 0.54 | $5.50 billion | $8.30 | 12.65 |
Rakuten | $11.60 billion | 1.64 | $-293,370,000.00 | ($0.22) | -54.95 |
Bayerische Motoren Werke Aktiengesellschaft has higher revenue and earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Bayerische Motoren Werke Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Bayerische Motoren Werke Aktiengesellschaft has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Rakuten has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Bayerische Motoren Werke Aktiengesellschaft and Rakuten, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Bayerische Motoren Werke Aktiengesellschaft | 1 | 3 | 5 | 0 | 2.44 |
Rakuten | 0 | 1 | 0 | 0 | 2.00 |
Bayerische Motoren Werke Aktiengesellschaft presently has a consensus target price of $53.00, indicating a potential downside of 49.53%. Given Bayerische Motoren Werke Aktiengesellschaft's stronger consensus rating and higher possible upside, analysts plainly believe Bayerische Motoren Werke Aktiengesellschaft is more favorable than Rakuten.
Profitability
This table compares Bayerische Motoren Werke Aktiengesellschaft and Rakuten's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Bayerische Motoren Werke Aktiengesellschaft | 3.61% | 6.00% | 1.60% |
Rakuten | -6.39% | -12.67% | -0.89% |
Summary
Bayerische Motoren Werke Aktiengesellschaft beats Rakuten on 11 of the 13 factors compared between the two stocks.