Reviewing BYD (OTCMKTS:BYDDY) & Suzuki Motor (OTCMKTS:SZKMF)

BYD (OTCMKTS:BYDDY) and Suzuki Motor (OTCMKTS:SZKMF) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Dividends

BYD pays an annual dividend of $0.73 per share and has a dividend yield of 1.2%. Suzuki Motor pays an annual dividend of $19.11 per share and has a dividend yield of 169.1%. BYD pays out 25.0% of its earnings in the form of a dividend. Suzuki Motor pays out 9.8% 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. Suzuki Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for BYD and Suzuki Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD	0	0	2	0	3.00
Suzuki Motor	0	0	0	0	N/A

Valuation and Earnings

This table compares BYD and Suzuki Motor’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BYD	$85.22 billion	1.05	$4.25 billion	$2.92	20.50
Suzuki Motor	N/A	N/A	N/A	$195.69	0.06

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

Institutional & Insider Ownership

0.0% of BYD shares are owned by institutional investors. Comparatively, 16.5% of Suzuki Motor shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BYD and Suzuki Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BYD	4.93%	21.49%	4.86%
Suzuki Motor	N/A	N/A	N/A

Summary

BYD beats Suzuki Motor on 6 of the 10 factors compared between the two stocks.

About BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.