Toyota Motor (NYSE:TM) vs. Mercedes-Benz Group (OTCMKTS:MBGYY) Head-To-Head Review

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

Analyst Recommendations

This is a summary of current ratings and target prices for Mercedes-Benz Group and Toyota Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	5	0	0	2.00
Toyota Motor	0	3	1	0	2.25

Earnings & Valuation

This table compares Mercedes-Benz Group and Toyota Motor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.36	$15.43 billion	C$2.76	5.39
Toyota Motor	$46,746.15 billion	0.01	$34.12 billion	$24.22	7.49

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	6.99%	10.90%	3.84%
Toyota Motor	10.86%	14.00%	5.48%

Volatility and Risk

Mercedes-Benz Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

1.5% of Toyota Motor shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Toyota Motor beats Mercedes-Benz Group on 10 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 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.