Mitsubishi Motors (OTCMKTS:MMTOF) vs. Volkswagen (OTCMKTS:VWAGY) Critical Survey

Volkswagen (OTCMKTS:VWAGY) and Mitsubishi Motors (OTCMKTS:MMTOF) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Volkswagen and Mitsubishi Motors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volkswagen	1	1	2	1	2.60
Mitsubishi Motors	1	0	0	0	1.00

Insider and Institutional Ownership

9.8% of Mitsubishi Motors shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Volkswagen and Mitsubishi Motors”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volkswagen	$364.13 billion	0.12	$8.29 billion	$1.22	7.04
Mitsubishi Motors	N/A	N/A	N/A	$139.74	0.02

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

Dividends

Volkswagen pays an annual dividend of $0.35 per share and has a dividend yield of 4.1%. Mitsubishi Motors pays an annual dividend of $17.92 per share and has a dividend yield of 716.8%. Volkswagen pays out 28.7% of its earnings in the form of a dividend. Mitsubishi Motors pays out 12.8% 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. Mitsubishi Motors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Volkswagen and Mitsubishi Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volkswagen	1.68%	2.74%	0.85%
Mitsubishi Motors	N/A	N/A	N/A

Summary

Volkswagen beats Mitsubishi Motors on 8 of the 12 factors compared between the two stocks.

About Volkswagen

Volkswagen AG manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles, and related parts; and offers motorcycles. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services. It sells its products under the Volkswagen Passenger Cars, koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brands. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

About Mitsubishi Motors

Mitsubishi Motors Corporation, together with its subsidiaries, engages in the development, production, and sale of passenger vehicles, and its parts and components in Japan, Europe, North America, Oceania, the rest of Asia, and internationally. Its products include EVs/PHEVs, SUVs, pickup trucks, MPVs, and cars under the Mitsubishi brand. It is also involved in automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; and manufacturing of automobile engines and transmissions, and press parts. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.