General Motors (GM) versus Its Peers Financial Comparison

General Motors (NYSE:GM) is one of 119 public companies in the “Automobiles” industry, but how does it compare to its peers? We will compare General Motors to similar companies based on the strength of its earnings, risk, valuation, analyst recommendations, profitability, institutional ownership and dividends.

Profitability

This table compares General Motors and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Motors	2.12%	19.36%	4.37%
General Motors Competitors	-1,480.18%	-127.90%	-12.02%

Valuation and Earnings

This table compares General Motors and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
General Motors	$185.02 billion	$2.70 billion	19.81
General Motors Competitors	$53.28 billion	$1.13 billion	7.93

General Motors has higher revenue and earnings than its peers. General Motors is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for General Motors and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Motors	1	4	22	1	2.82
General Motors Competitors	2142	5148	6400	192	2.33

General Motors presently has a consensus price target of $101.44, indicating a potential upside of 17.45%. As a group, “Automobiles” companies have a potential upside of 72.08%. Given General Motors’ peers higher possible upside, analysts clearly believe General Motors has less favorable growth aspects than its peers.

Volatility & Risk

General Motors has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, General Motors’ peers have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Dividends

General Motors pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. General Motors pays out 16.5% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 147.1% and pay out 7.2% of their earnings in the form of a dividend. General Motors has increased its dividend for 3 consecutive years. General Motors lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

92.7% of General Motors shares are held by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are held by institutional investors. 0.4% of General Motors shares are held by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

General Motors beats its peers on 11 of the 15 factors compared.

About General Motors

General Motors Company designs, manufactures and sells cars, trucks, crossovers and sport utility vehicles. Its vehicle brands include Chevrolet, Buick, GMC and Cadillac, and its offerings also include vehicle parts, software and related services. GM Financial provides automotive financing and leasing products to customers and dealers. Founded in 1908, General Motors is headquartered in Detroit, Michigan. The company serves customers in North America and international markets, with operations and sales spanning multiple regions.