Critical Analysis: Renault (RNSDF) vs. Its Rivals

Renault (OTCMKTS:RNSDF) is one of 119 public companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Renault to similar businesses based on the strength of its earnings, analyst recommendations, risk, dividends, valuation, institutional ownership and profitability.

Profitability

This table compares Renault and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renault	N/A	N/A	N/A
Renault Competitors	-1,371.58%	-125.36%	-10.43%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Renault and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renault	1	0	0	0	1.00
Renault Competitors	2034	5028	6301	185	2.34

As a group, “Automobiles” companies have a potential upside of 77.65%. Given Renault’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Renault has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Renault and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Renault	N/A	N/A	6.08
Renault Competitors	$53.39 billion	$1.13 billion	5.30

Renault’s competitors have higher revenue and earnings than Renault. Renault is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Renault pays an annual dividend of $1.72 per share and has a dividend yield of 6.0%. Renault pays out 36.5% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 150.5% and pay out 7.2% of their earnings in the form of a dividend. Renault lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

24.6% of Renault shares are held by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are held by institutional investors. 13.9% of shares of all “Automobiles” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Renault competitors beat Renault on 9 of the 13 factors compared.

Renault Company Profile

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan. The company's Sale Financing segment offers sale financing, leasing, maintenance, and services contract under the Mobilize Financial Services brand. Its Mobility Services segment provides mobility and energy solutions for electric vehicle users under the Mobilize brand. In addition, it is also involved in the design, manufacture, and sale of passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands. Further, the company offers used vehicles and spare parts; and engages in business-to-business powertrain activities, and research and advanced engineering activities. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.