Reviewing Isuzu Motors (OTCMKTS:ISUZY) and Toyota Motor (NYSE:TM)

Toyota Motor (NYSE:TM) and Isuzu Motors (OTCMKTS:ISUZY) are both large-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Dividends

Toyota Motor pays an annual dividend of $5.10 per share and has a dividend yield of 2.3%. Isuzu Motors pays an annual dividend of $0.37 per share and has a dividend yield of 2.4%. Toyota Motor pays out 22.5% of its earnings in the form of a dividend. Isuzu Motors pays out 28.9% 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.

Earnings and Valuation

This table compares Toyota Motor and Isuzu Motors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$315.45 billion	0.94	$31.45 billion	$22.69	9.67
Isuzu Motors	$21.07 billion	0.53	$886.80 million	$1.28	12.26

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

Analyst Ratings

This is a summary of current ratings for Toyota Motor and Isuzu Motors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	2	2	3	0	2.14
Isuzu Motors	0	0	0	0	0.00

Institutional & Insider Ownership

1.5% of Toyota Motor shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	9.33%	12.32%	4.85%
Isuzu Motors	4.09%	8.55%	4.07%

Volatility and Risk

Toyota Motor has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Isuzu Motors has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Summary

Toyota Motor beats Isuzu Motors on 12 of the 14 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, 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.