Financial Contrast: Ford Motor (NYSE:F) & Bayerische Motoren Werke (OTCMKTS:BAMXF)

Bayerische Motoren Werke (OTCMKTS:BAMXF) and Ford Motor (NYSE:F) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Earnings and Valuation

This table compares Bayerische Motoren Werke and Ford Motor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke	$150.95 billion	0.24	$8.25 billion	$12.12	5.12
Ford Motor	$186.97 billion	0.27	-$8.18 billion	($1.97)	-6.32

Bayerische Motoren Werke has higher earnings, but lower revenue than Ford Motor. Ford Motor is trading at a lower price-to-earnings ratio than Bayerische Motoren Werke, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bayerische Motoren Werke and Ford Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	4.83%	6.23%	2.27%
Ford Motor	-4.17%	18.89%	2.40%

Volatility and Risk

Bayerische Motoren Werke has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Insider and Institutional Ownership

58.7% of Ford Motor shares are owned by institutional investors. 0.6% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Bayerische Motoren Werke and Ford Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	1	2	0	2	2.60
Ford Motor	2	10	7	0	2.26

Ford Motor has a consensus price target of $15.02, indicating a potential upside of 20.68%. Given Ford Motor’s higher probable upside, analysts clearly believe Ford Motor is more favorable than Bayerische Motoren Werke.

Summary

Ford Motor beats Bayerische Motoren Werke on 9 of the 15 factors compared between the two stocks.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.

About Ford Motor

Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.