Financial Review: Mazda Motor (MZDAY) versus Nissan (NSANY)

Mazda Motor (OTCMKTS: MZDAY) and Nissan (OTCMKTS:NSANY) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

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Mazda Motor has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Nissan has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Mazda Motor and Nissan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mazda Motor 0 0 0 0 N/A
Nissan 0 0 1 0 3.00

Dividends

Mazda Motor pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Nissan pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Mazda Motor pays out 4.9% of its earnings in the form of a dividend. Nissan pays out 15.3% 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.

Insider and Institutional Ownership

0.1% of Mazda Motor shares are owned by institutional investors. Comparatively, 0.1% of Nissan shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Mazda Motor and Nissan’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mazda Motor $29.73 billion 0.27 $837.32 million $0.82 8.27
Nissan $108.41 billion 0.38 $6.17 billion $2.61 8.05

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

Profitability

This table compares Mazda Motor and Nissan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mazda Motor 2.90% 10.01% 4.33%
Nissan 6.89% 13.60% 3.83%

Summary

Nissan beats Mazda Motor on 10 of the 13 factors compared between the two stocks.

Mazda Motor Company Profile

Mazda Motor Corporation manufactures and sells passenger cars and commercial vehicles in Japan, North America, Europe, China, and internationally. Its principal products include four-wheeled vehicles, gasoline reciprocating engines, diesel engines, and automatic and manual transmissions for vehicles. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was founded in 1920 and is headquartered in Hiroshima, Japan.

Nissan Company Profile

Nissan Motor Co., Ltd. manufactures and sells vehicles and automotive parts worldwide. It sells vehicles under the Nissan, Infiniti, and Datsun brands. The company offers vehicle and vehicle parts; engines, manual transmissions, and other related component parts; automotive parts; industrial equipment engines and other related component parts, and axles; specially equipped vehicles; motorsports engines; and rechargeable lithium-ion batteries. It also provides financial services, auto credit and car leasing, card business, insurance agency, and inventory finance, as well as engages in exterior and interior design for automobiles, and operations and consulting related to the analysis and assay of raw materials. In addition, the company engages in the provision of travel, environmental and engineering, production technology, and facility services; ground and vehicle management, and information and logistics businesses; design, vehicle drawings and experiments, other engineering, electronic devices, and electronic equipment businesses; export and import of auto components and materials; and real estate businesses. Further, it is involved in promotion of motorsports, including race and motorsports event planning, and vehicle remodeling; sale of car parts and accessories for motorsports; demonstration test and commercialization study for second-life use of lithium-ion batteries for automotive use; and vehicle development of light-duty trucks. Additionally, the company imports and sells Renault vehicles and parts; and manages and plans professional soccer team and soccer schools. Nissan Motor Co., Ltd. has a strategic alliance with Mitsubishi Motors Corporation. The company was founded in 1933 and is headquartered in Yokohama, Japan.

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