Subaru (OTCMKTS:FUJHY) vs. BYD (OTCMKTS:BYDDY) Head to Head Analysis

by · The Markets Daily

BYD (OTCMKTS:BYDDYGet Free Report) and Subaru (OTCMKTS:FUJHYGet Free Report) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Analyst Ratings

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

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
BYD03002.00
Subaru11102.00

Earnings & Valuation

This table compares BYD and Subaru”s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
BYD$108.10 billion1.10$5.60 billion$0.7118.66
Subaru$30.77 billion0.38$2.23 billion$0.5016.30

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

Profitability

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

Net MarginsReturn on EquityReturn on Assets
BYDN/AN/AN/A
Subaru2.27%3.87%2.06%

Volatility & Risk

BYD has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Subaru has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of BYD shares are held by institutional investors. Comparatively, 0.0% of Subaru 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.

Dividends

BYD pays an annual dividend of $0.15 per share and has a dividend yield of 1.1%. Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. BYD pays out 21.1% of its earnings in the form of a dividend. Subaru pays out 44.0% 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.

Summary

BYD beats Subaru on 7 of the 13 factors compared between the two stocks.

About BYD

(Get Free Report)

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 Subaru

(Get Free Report)

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.