Mercedes-Benz Group (OTCMKTS:MBGYY) and Isuzu Motors (OTCMKTS:ISUZY) Financial Review

Mercedes-Benz Group (OTCMKTS:MBGYY) and Isuzu Motors (OTCMKTS:ISUZY) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	4.85%	7.24%	2.57%
Isuzu Motors	3.99%	8.16%	3.99%

Risk and Volatility

Mercedes-Benz Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Isuzu Motors has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mercedes-Benz Group and Isuzu Motors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	6	0	0	2.00
Isuzu Motors	0	0	0	0	0.00

Dividends

Mercedes-Benz Group pays an annual dividend of C$0.80 per share and has a dividend yield of 5.1%. Isuzu Motors pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Mercedes-Benz Group pays out 24.3% of its earnings in the form of a dividend. Isuzu Motors pays out 20.0% 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.

Valuation & Earnings

This table compares Mercedes-Benz Group and Isuzu Motors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.39	$11.05 billion	C$3.29	4.80
Isuzu Motors	$21.07 billion	0.43	$886.80 million	$1.20	10.63

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

Summary

Mercedes-Benz Group beats Isuzu Motors on 7 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 Isuzu Motors

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, and SUVs; and marine and industrial engines. The company also supplies diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and logistics management activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Yokohama-shi, Japan.