Suzuki Motor (OTCMKTS:SZKMY – Get Free Report) and Ford Motor (NYSE:F – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
0.0% of Suzuki 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Suzuki Motor and Ford Motor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Suzuki Motor | 0 | 1 | 1 | 1 | 3.00 |
| Ford Motor | 1 | 10 | 8 | 0 | 2.37 |
Earnings and Valuation
This table compares Suzuki Motor and Ford Motor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Suzuki Motor | $41.80 billion | 0.60 | $2.90 billion | $6.96 | 7.51 |
| Ford Motor | $187.97 billion | 0.29 | -$8.18 billion | ($1.87) | -7.22 |
Suzuki Motor has higher earnings, but lower revenue than Ford Motor. Ford Motor is trading at a lower price-to-earnings ratio than Suzuki Motor, indicating that it is currently the more affordable of the two stocks.
Dividends
Suzuki Motor pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.4%. Suzuki Motor pays out 11.5% 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. Ford Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Suzuki Motor has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.
Profitability
This table compares Suzuki Motor and Ford Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Suzuki Motor | 7.85% | 12.49% | 7.85% |
| Ford Motor | -3.93% | 17.23% | 2.33% |
Summary
Ford Motor beats Suzuki Motor on 9 of the 17 factors compared between the two stocks.
About Suzuki Motor
Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.
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.
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