Comparing Geely Automobile (OTCMKTS:GELYF) and Toyota Motor (NYSE:TM)

Geely Automobile (OTCMKTS:GELYF) and Toyota Motor (NYSE:TM) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Geely Automobile and Toyota Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Geely Automobile	0	0	0	0	0.00
Toyota Motor	0	4	1	2	2.71

Toyota Motor has a consensus target price of $290.00, indicating a potential upside of 53.32%. Given Toyota Motor’s stronger consensus rating and higher probable upside, analysts plainly believe Toyota Motor is more favorable than Geely Automobile.

Dividends

Geely Automobile pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Toyota Motor pays an annual dividend of $5.60 per share and has a dividend yield of 3.0%. Geely Automobile pays out 13.6% of its earnings in the form of a dividend. Toyota Motor pays out 24.7% 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.

Valuation & Earnings

This table compares Geely Automobile and Toyota Motor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geely Automobile	N/A	N/A	N/A	$0.27	8.54
Toyota Motor	$336.70 billion	0.73	$25.40 billion	$22.68	8.34

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

Profitability

This table compares Geely Automobile and Toyota Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Geely Automobile	N/A	N/A	N/A
Toyota Motor	8.61%	11.21%	4.34%

Institutional and Insider Ownership

14.9% of Geely Automobile shares are held by institutional investors. Comparatively, 1.5% of Toyota Motor shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Toyota Motor beats Geely Automobile on 10 of the 13 factors compared between the two stocks.

About Geely Automobile

Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People's Republic of China. The company engages in the research and development, production, marketing, and sale of passenger vehicles, automobile parts, and related automobile components, as well as provision of related after-sales and technical services. It also offers sedans, wagons, sport utility cars, and electric vehicles under the Geely, Geometry, and ZEEKR brands; vehicles design, technology consulting, general logistics, packing, and storage services; researches and develops technology; procures mechanical and electrical equipment, and automobile parts and components; and manufactures and sells vehicle engines. In addition, the company provides automotive design, software systems development, modular development, virtual engineering of intelligent electric vehicles, and mobility technology solutions; knock down kits; and engages in the preparation and construction of engine manufactory projects. It operates in Malaysia, Eastern Europe, the Middle East, Northern Europe, the Philippines, Central and South America, Africa, and internationally. Geely Automobile Holdings Limited is headquartered in Wan Chai, Hong Kong.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.