Ford Motor (NYSE:F) & Great Wall Motor (OTCMKTS:GWLLF) Critical Contrast

Great Wall Motor (OTCMKTS:GWLLF) and Ford Motor (NYSE:F) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

10.8% of Great Wall Motor shares are held by institutional investors. Comparatively, 58.7% of Ford Motor shares are held by institutional investors. 0.6% of Ford Motor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Great Wall Motor pays an annual dividend of $0.83 per share and has a dividend yield of 80.7%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Great Wall Motor pays out 31.2% of its earnings in the form of a dividend. Ford Motor pays out -32.1% 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.

Profitability

This table compares Great Wall Motor and Ford Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Wall Motor	N/A	N/A	N/A
Ford Motor	-3.93%	17.23%	2.33%

Valuation & Earnings

This table compares Great Wall Motor and Ford Motor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Wall Motor	N/A	N/A	N/A	$2.66	0.39
Ford Motor	$187.27 billion	0.30	-$8.18 billion	($1.87)	-7.43

Great Wall Motor has higher earnings, but lower revenue than Ford Motor. Ford Motor is trading at a lower price-to-earnings ratio than Great Wall Motor, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Great Wall Motor and Ford Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Wall Motor	0	0	0	0	0.00
Ford Motor	1	10	8	0	2.37

Ford Motor has a consensus target price of $15.68, suggesting a potential upside of 12.85%. Given Ford Motor’s stronger consensus rating and higher possible upside, analysts clearly believe Ford Motor is more favorable than Great Wall Motor.

Summary

Ford Motor beats Great Wall Motor on 9 of the 13 factors compared between the two stocks.

About Great Wall Motor

Great Wall Motor Company Limited researches and develops, manufactures, and sells automobiles, and automotive parts and components in China, Europe, ASEAN countries, Latin America, the Middle East, Australia, South Africa, and internationally. The company offers SUVs, sedans, pick-up trucks, multi-purpose vehicles, and energy vehicles primarily under the Haval, WEY, ORA, Tank, and Great Wall Pickup brand names. It also provides investment and financing, logistics and goods transportation, buildings rental, after-sales, customer sales, technical development and consulting, technical, and finance leasing services; consulting services on automotive research and development; and operates investment platform. In addition, the company repairs automobiles; transports general goods; researches, develops, and manufactures auto moulds; researches and develops unmanned vehicles; researches and manufactures motorcycles and related parts; and automotive technology research and development, and technical consultancy services, as well as processes, recycles, and sells waste and used materials; and sells lubricants. Further, it engages in the wholesale and retail of car accessories; research and test development of engineering technology; international trading activities; scrap car recycling and dismantling activities; and provision of insurance brokering, technical, and computer system services, as well as development of network and information security software. The company was formerly known as Baoding Great Wall Motor Company Limited and changed its name to Great Wall Motor Company Limited in May 2003. The company was founded in 1984 and is headquartered in Baoding, China. Great Wall Motor Company Limited is a subsidiary of Baoding Innovation Great Wall Asset Management Company Limited.

About Ford Motor

Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.