Reviewing Toyota Motor (NYSE:TM) & Dongfeng Motor Group (OTCMKTS:DNFGY)

Toyota Motor (NYSE:TM) and Dongfeng Motor Group (OTCMKTS:DNFGY) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Toyota Motor and Dongfeng Motor Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	7.59%	9.74%	3.82%
Dongfeng Motor Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Toyota Motor and Dongfeng Motor Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$50,684.95 billion	0.00	$25.40 billion	$19.58	8.77
Dongfeng Motor Group	$14.77 billion	0.65	$8.07 million	N/A	N/A

Toyota Motor has higher revenue and earnings than Dongfeng Motor Group.

Risk and Volatility

Toyota Motor has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Dongfeng Motor Group has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500.

Dividends

Toyota Motor pays an annual dividend of $5.60 per share and has a dividend yield of 3.3%. Dongfeng Motor Group pays an annual dividend of $0.26 per share and has a dividend yield of 0.4%. Toyota Motor pays out 28.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

1.5% of Toyota Motor shares are held by institutional investors. 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.

Analyst Recommendations

This is a breakdown of current ratings for Toyota Motor and Dongfeng Motor Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	0	4	2	2	2.75
Dongfeng Motor Group	0	0	0	1	4.00

Toyota Motor currently has a consensus target price of $290.00, indicating a potential upside of 68.87%. Given Toyota Motor’s higher possible upside, equities research analysts clearly believe Toyota Motor is more favorable than Dongfeng Motor Group.

Summary

Toyota Motor beats Dongfeng Motor Group on 11 of the 14 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

About Dongfeng Motor Group

Dongfeng Motor Group Company Limited engages in the research, development, manufacture, and sale of commercial and passenger vehicles, engines, and other auto parts in the People's Republic of China. It operates in four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. The company's commercial vehicles include light, medium, and heavy-duty trucks, as well as pickup trucks and buses; passenger vehicles comprise sedans, MPVs, and SUVs; electric and new energy vehicles, and special commercial vehicles; and other automobile related products, as well as automotive parts and components, and automobile equipment. It also provides investment and advisory, car maintenance and repair, insurance agency, automotive technology development and system integration, and logistics, as well as financing and loan services. In addition, it is involved in trading of used car. The company is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited operates as a subsidiary of Dongfeng Motor Corporation.