Renault (RNSDF) vs. Its Competitors Critical Analysis

Renault (OTCMKTS:RNSDF) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it weigh in compared to its rivals? We will compare Renault to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.

Insider and Institutional Ownership

24.6% of Renault shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are owned by institutional investors. 13.9% of shares of all “Automobiles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Renault and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renault	1	0	0	0	1.00
Renault Competitors	2042	5035	6309	188	2.34

As a group, “Automobiles” companies have a potential upside of 67.95%. Given Renault’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Renault has less favorable growth aspects than its rivals.

Dividends

Renault pays an annual dividend of $1.72 per share and has a dividend yield of 6.0%. Renault pays out 36.5% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 145.3% and pay out 7.2% of their earnings in the form of a dividend. Renault lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Renault and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renault	N/A	N/A	N/A
Renault Competitors	-1,522.64%	-127.01%	-11.73%

Valuation and Earnings

This table compares Renault and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Renault	N/A	N/A	6.08
Renault Competitors	$1,483.16 billion	$1.13 billion	6.85

Renault’s rivals have higher revenue and earnings than Renault. Renault is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Renault rivals beat Renault on 10 of the 13 factors compared.

Renault Company Profile

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan. The company's Sale Financing segment offers sale financing, leasing, maintenance, and services contract under the Mobilize Financial Services brand. Its Mobility Services segment provides mobility and energy solutions for electric vehicle users under the Mobilize brand. In addition, it is also involved in the design, manufacture, and sale of passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands. Further, the company offers used vehicles and spare parts; and engages in business-to-business powertrain activities, and research and advanced engineering activities. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.