General Motors (NYSE:GM) & Renault (OTCMKTS:RNLSY) Critical Survey

General Motors (NYSE:GM) and Renault (OTCMKTS:RNLSY) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

General Motors has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Renault has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

92.7% of General Motors shares are held by institutional investors. 0.4% of General Motors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

General Motors pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. Renault pays an annual dividend of $0.31 per share and has a dividend yield of 4.7%. General Motors pays out 36.4% of its earnings in the form of a dividend. General Motors has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for General Motors and Renault, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Motors	1	3	18	1	2.83
Renault	2	3	1	0	1.83

General Motors presently has a consensus target price of $101.41, indicating a potential upside of 15.76%. Given General Motors’ stronger consensus rating and higher probable upside, analysts clearly believe General Motors is more favorable than Renault.

Earnings & Valuation

This table compares General Motors and Renault”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Motors	$185.02 billion	0.42	$2.70 billion	$1.98	44.24
Renault	$65.52 billion	0.15	-$12.37 billion	N/A	N/A

General Motors has higher revenue and earnings than Renault.

Profitability

This table compares General Motors and Renault’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Motors	1.05%	18.18%	4.17%
Renault	N/A	N/A	N/A

Summary

General Motors beats Renault on 14 of the 16 factors compared between the two stocks.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

About Renault

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.