Head to Head Survey: Isuzu Motors (OTCMKTS:ISUZF) versus Mazda Motor (OTCMKTS:MZDAY)

Mazda Motor (OTCMKTS:MZDAY) and Isuzu Motors (OTCMKTS:ISUZF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Mazda Motor and Isuzu Motors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mazda Motor	0	2	1	1	2.75
Isuzu Motors	0	0	0	0	0.00

Institutional and Insider Ownership

14.5% of Isuzu Motors shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Mazda Motor and Isuzu Motors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mazda Motor	$32.67 billion	0.14	$231.57 million	$0.54	6.78
Isuzu Motors	N/A	N/A	N/A	$132.79	0.10

Mazda Motor has higher revenue and earnings than Isuzu Motors. Isuzu Motors is trading at a lower price-to-earnings ratio than Mazda Motor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mazda Motor and Isuzu Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mazda Motor	2.06%	9.13%	3.96%
Isuzu Motors	N/A	N/A	N/A

Dividends

Mazda Motor pays an annual dividend of $0.11 per share and has a dividend yield of 3.0%. Isuzu Motors pays an annual dividend of $15.14 per share and has a dividend yield of 112.8%. Mazda Motor pays out 20.4% of its earnings in the form of a dividend. Isuzu Motors pays out 11.4% 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. Isuzu Motors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Mazda Motor beats Isuzu Motors on 8 of the 12 factors compared between the two stocks.

About Mazda Motor

Mazda Motor Corporation engages in the manufacture and sale of passenger cars and commercial vehicles in Japan, China, North America, Europe, and internationally. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was incorporated in 1920 and is headquartered in Hiroshima, Japan.

About Isuzu Motors

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, and SUVs; and marine and industrial engines. The company also supplies diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and logistics management activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Yokohama-shi, Japan.