Toyota Motor Corp Ltd Ord (TM) and Ford Motor (F) Critical Review
Toyota Motor Corp Ltd Ord (NYSE: TM) and Ford Motor (NYSE:F) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
This is a summary of recent ratings for Toyota Motor Corp Ltd Ord and Ford Motor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Toyota Motor Corp Ltd Ord||1||3||1||0||2.00|
Toyota Motor Corp Ltd Ord currently has a consensus target price of $112.11, indicating a potential downside of 0.14%. Ford Motor has a consensus target price of $12.42, indicating a potential upside of 15.09%. Given Ford Motor’s stronger consensus rating and higher probable upside, analysts plainly believe Ford Motor is more favorable than Toyota Motor Corp Ltd Ord.
Earnings and Valuation
This table compares Toyota Motor Corp Ltd Ord and Ford Motor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Toyota Motor Corp Ltd Ord||$254.89 billion||0.66||$32.30 billion||$11.40||9.85|
|Ford Motor||$153.60 billion||0.28||$13.99 billion||$0.95||11.36|
Toyota Motor Corp Ltd Ord has higher revenue and earnings than Ford Motor. Toyota Motor Corp Ltd Ord is trading at a lower price-to-earnings ratio than Ford Motor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Toyota Motor Corp Ltd Ord has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Insider & Institutional Ownership
0.8% of Toyota Motor Corp Ltd Ord shares are held by institutional investors. Comparatively, 54.3% of Ford Motor shares are held by institutional investors. 1.1% of Ford Motor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Toyota Motor Corp Ltd Ord and Ford Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Toyota Motor Corp Ltd Ord||6.74%||10.39%||3.92%|
Toyota Motor Corp Ltd Ord pays an annual dividend of $3.54 per share and has a dividend yield of 3.2%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 5.6%. Toyota Motor Corp Ltd Ord pays out 31.1% of its earnings in the form of a dividend. Ford Motor pays out 63.2% 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.
About Toyota Motor Corp Ltd Ord
Toyota Motor Corporation (Toyota) conducts business in the automotive industry. The Company also conducts business in finance and other industries. The Company’s segments include Automotive, Financial Services and All Other. Toyota sells its vehicles in approximately 190 countries and regions. Toyota’s markets for its automobiles are Japan, North America, Europe and Asia. The Company’s Automotive segment includes the design, manufacture, assembly and sale of passenger vehicles, minivans and commercial vehicles, such as trucks and related parts and accessories. The Company’s Financial Services segment consists of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. The All Other segment includes the design, manufacturing and sale of housing, telecommunications and other businesses. Its information technology related businesses include a Web portal for automobile information called GAZOO.com.
About Ford Motor
Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.
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