Reviewing Bayerische Motoren Werke (OTCMKTS:BAMXF) & Toyota Motor (NYSE:TM)

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

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Bayerische Motoren Werke and Toyota Motor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	0	3	0	1	2.50
Toyota Motor	2	2	3	0	2.14

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	5.14%	7.58%	2.72%
Toyota Motor	8.77%	11.63%	4.58%

Volatility and Risk

Bayerische Motoren Werke has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke	$154.09 billion	0.37	$7.89 billion	$10.07	9.83
Toyota Motor	$49,385.01 billion	0.01	$31.45 billion	$22.69	8.90

Toyota Motor has higher revenue and earnings than Bayerische Motoren Werke. Toyota 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.

Summary

Toyota Motor beats Bayerische Motoren Werke on 9 of the 13 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 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.