BYD (BYDDY) vs. The Competition Critical Analysis

BYD (OTCMKTS:BYDDY) is one of 120 publicly-traded companies in the “Automobiles” industry, but how does it compare to its peers? We will compare BYD to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Profitability

This table compares BYD and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BYD	N/A	N/A	N/A
BYD Competitors	-1,495.97%	-147.97%	-16.27%

Valuation and Earnings

This table compares BYD and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BYD	$111.84 billion	$4.54 billion	18.14
BYD Competitors	$52.53 billion	$1.11 billion	7.20

BYD has higher revenue and earnings than its peers. BYD is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for BYD and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD	0	1	0	0	2.00
BYD Competitors	2082	5062	6313	188	2.34

As a group, “Automobiles” companies have a potential upside of 70.92%. Given BYD’s peers stronger consensus rating and higher possible upside, analysts plainly believe BYD has less favorable growth aspects than its peers.

Insider and Institutional Ownership

0.0% of BYD shares are held by institutional investors. Comparatively, 38.1% of shares of all “Automobiles” companies are held by institutional investors. 14.0% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

BYD has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, BYD’s peers have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Dividends

BYD pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. BYD pays out 7.0% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 147.4% and pay out 7.2% of their earnings in the form of a dividend.

Summary

BYD peers beat BYD on 8 of the 15 factors compared.

BYD Company Profile

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.