Analyzing Stellantis (NYSE:STLA) and Mercedes-Benz Group (OTCMKTS:MBGYY)

Mercedes-Benz Group (OTCMKTS:MBGYY) and Stellantis (NYSE:STLA) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Volatility and Risk

Mercedes-Benz Group has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Stellantis has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Mercedes-Benz Group and Stellantis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	1	1	0	2.50
Stellantis	1	8	4	1	2.36

Stellantis has a consensus price target of $27.34, suggesting a potential upside of 103.99%. Given Stellantis’ higher probable upside, analysts plainly believe Stellantis is more favorable than Mercedes-Benz Group.

Insider and Institutional Ownership

59.5% of Stellantis shares are held by institutional investors. 0.0% of Stellantis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mercedes-Benz Group and Stellantis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$165.81 billion	N/A	$15.43 billion	C$2.88	4.87
Stellantis	$205.13 billion	0.20	$20.13 billion	N/A	N/A

Stellantis has higher revenue and earnings than Mercedes-Benz Group.

Profitability

This table compares Mercedes-Benz Group and Stellantis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	7.36%	11.66%	4.11%
Stellantis	N/A	N/A	N/A

Summary

Stellantis beats Mercedes-Benz Group on 8 of the 12 factors compared between the two stocks.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.