Subaru (FUJHY) and Its Rivals Critical Contrast

Subaru (OTCMKTS:FUJHY) is one of 119 public companies in the “Automobiles” industry, but how does it contrast to its competitors? We will compare Subaru to related companies based on the strength of its risk, valuation, analyst recommendations, profitability, dividends, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent recommendations for Subaru and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	0	0	1.50
Subaru Competitors	2140	5144	6398	191	2.33

As a group, “Automobiles” companies have a potential upside of 63.50%. Given Subaru’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Subaru has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Subaru and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Subaru	$31.79 billion	$599.56 million	21.98
Subaru Competitors	$53.35 billion	$1.13 billion	7.51

Subaru’s competitors have higher revenue and earnings than Subaru. Subaru is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.5%. Subaru pays out 55.0% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 143.3% and pay out 7.2% of their earnings in the form of a dividend. Subaru lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Subaru has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Subaru’s competitors have a beta of 1.02, meaning that their average stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Subaru and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subaru	1.77%	3.04%	1.58%
Subaru Competitors	-1,522.34%	-123.40%	-11.66%

Insider & Institutional Ownership

0.0% of Subaru shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Automobiles” companies are owned by institutional investors. 14.6% of shares of all “Automobiles” companies are owned 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.

Summary

Subaru competitors beat Subaru on 11 of the 15 factors compared.

About Subaru

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.