Financial Comparison: Bayerische Motoren Werke (OTCMKTS:BAMXF) vs. Ford Motor (NYSE:F)

Ford Motor (NYSE:F) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap consumer discretionary 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

58.7% of Ford Motor shares are held by institutional investors. 0.6% of Ford Motor shares are held by insiders. 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.

Valuation and Earnings

This table compares Ford Motor and Bayerische Motoren Werke”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ford Motor	$187.27 billion	0.25	-$8.18 billion	($1.97)	-6.06
Bayerische Motoren Werke	$150.95 billion	0.24	$8.25 billion	$11.75	5.36

Bayerische Motoren Werke has lower revenue, but higher earnings than Ford Motor. Ford 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ford Motor	1	11	7	0	2.32
Bayerische Motoren Werke	1	2	0	2	2.60

Ford Motor presently has a consensus target price of $15.02, suggesting a potential upside of 25.75%. Given Ford Motor’s higher probable upside, analysts clearly believe Ford Motor is more favorable than Bayerische Motoren Werke.

Volatility and Risk

Ford Motor has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ford Motor	-4.17%	18.89%	2.40%
Bayerische Motoren Werke	4.83%	6.23%	2.27%

Summary

Ford Motor beats Bayerische Motoren Werke on 9 of the 15 factors compared between the two stocks.

About Ford Motor

Ford Motor Company designs, manufactures, markets and services vehicles under the Ford and Lincoln brands. Its lineup includes cars, trucks, sport utility vehicles and commercial vehicles, as well as battery-electric and hybrid models. The company also provides vehicle-related services and financing through Ford Credit. Ford serves customers in North America and markets around the world, including Europe, South America and the Asia-Pacific region. Its operations include vehicle development and manufacturing, sales and after-sales support, and services for commercial fleet customers.

About Bayerische Motoren Werke

Bayerische Motoren Werke AG, commonly known as BMW, is a Germany-based manufacturer of premium automobiles and motorcycles. Its automotive portfolio includes vehicles sold under the BMW, MINI and Rolls-Royce Motor Cars brands, while BMW Motorrad produces motorcycles and related products. Founded in 1916, BMW began as an aircraft-engine manufacturer before expanding into automobiles and motorcycles. The company also provides financial services, including vehicle financing and leasing, to retail and business customers.