Critical Contrast: Nissan Motor (NSANY) and NIO (NIO)

Nissan Motor (OTCMKTS:NSANY) and NIO (NYSE:NIO) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Earnings and Valuation

This table compares Nissan Motor and NIO’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nissan Motor $107.92 billion 0.31 $6.74 billion $3.63 4.70
NIO N/A N/A N/A N/A N/A

Nissan Motor has higher revenue and earnings than NIO.

Profitability

This table compares Nissan Motor and NIO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nissan Motor 6.03% 13.72% 3.93%
NIO N/A N/A N/A

Dividends

Nissan Motor pays an annual dividend of $0.78 per share and has a dividend yield of 4.6%. NIO does not pay a dividend. Nissan Motor pays out 21.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.1% of Nissan Motor shares are held by institutional investors. Comparatively, 15.2% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nissan Motor and NIO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nissan Motor 0 2 0 0 2.00
NIO 1 2 4 0 2.43

NIO has a consensus target price of $8.47, indicating a potential upside of 21.13%. Given NIO’s stronger consensus rating and higher probable upside, analysts plainly believe NIO is more favorable than Nissan Motor.

Summary

NIO beats Nissan Motor on 6 of the 11 factors compared between the two stocks.

About Nissan Motor

Nissan Motor Co., Ltd. manufactures and sells vehicles and automotive parts worldwide. It sells vehicles under the Nissan, Infiniti, and Datsun brands. The company offers vehicle and vehicle parts; engines, manual transmissions, and other related component parts; automotive parts; industrial equipment engines and other related component parts, and axles; specially equipped vehicles; motorsports engines; and rechargeable lithium-ion batteries. It also provides financial services, auto credit and car leasing, card business, insurance agency, and inventory finance, as well as engages in exterior and interior design for automobiles, and operations and consulting related to the analysis and assay of raw materials. In addition, the company engages in the provision of travel, environmental and engineering, production technology center, and facility services; ground and vehicle management, and information and logistics businesses; design, vehicle drawings and experiments, other engineering, electronic devices, and electronic equipment businesses; export and import of auto components and materials; and real estate businesses. Further, it is involved in promotion of motorsports, including race and motorsports event planning, and vehicle remodeling; sale of car parts and accessories for motorsports; and demonstration test and commercialization study for second-life use of lithium-ion batteries for automotive use. Additionally, the company imports and sells Renault vehicles and parts; and manages and plans professional soccer team and soccer schools. The company was founded in 1933 and is headquartered in Yokohama, Japan.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China, the United States, Germany, and the United Kingdom. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

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