Critical Survey: BYD (OTCMKTS:BYDDY) versus Mazda Motor (OTCMKTS:MZDAF)

Mazda Motor (OTCMKTS:MZDAF) and BYD (OTCMKTS:BYDDY) are both consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Institutional & Insider Ownership

19.4% of Mazda Motor shares are held by institutional investors. Comparatively, 0.0% of BYD shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Mazda Motor pays an annual dividend of $3.98 per share and has a dividend yield of 47.8%. BYD pays an annual dividend of $0.73 per share and has a dividend yield of 1.3%. Mazda Motor pays out 1.2% of its earnings in the form of a dividend. BYD pays out 25.0% 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. Mazda Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Mazda Motor and BYD, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mazda Motor	0	0	0	0	N/A
BYD	0	0	3	0	3.00

Profitability

This table compares Mazda Motor and BYD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mazda Motor	N/A	N/A	N/A
BYD	4.93%	21.49%	4.86%

Earnings and Valuation

This table compares Mazda Motor and BYD’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mazda Motor	N/A	N/A	N/A	$341.27	0.02
BYD	$85.22 billion	0.99	$4.25 billion	$2.92	19.41

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

Summary

BYD beats Mazda Motor on 6 of the 10 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 BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.