General Motors (NYSE:GM – Get Free Report) and VinFast Auto (NASDAQ:VFS – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
General Motors has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Insider and Institutional Ownership
92.7% of General Motors shares are held by institutional investors. 0.7% of General Motors shares are held by insiders. Comparatively, 16.2% of VinFast Auto shares 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.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
General Motors | $188.45 billion | 0.25 | $6.01 billion | $6.94 | 7.02 |
VinFast Auto | $44,019.02 billion | 0.00 | -$2.40 billion | ($1.36) | -2.57 |
General Motors has higher earnings, but lower revenue than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than General Motors, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for General Motors and VinFast Auto, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
General Motors | 4 | 9 | 9 | 1 | 2.30 |
VinFast Auto | 0 | 1 | 1 | 1 | 3.00 |
General Motors presently has a consensus target price of $54.56, suggesting a potential upside of 11.98%. VinFast Auto has a consensus target price of $5.75, suggesting a potential upside of 64.29%. Given VinFast Auto’s stronger consensus rating and higher possible upside, analysts plainly believe VinFast Auto is more favorable than General Motors.
Profitability
This table compares General Motors and VinFast Auto’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
General Motors | 3.21% | 15.29% | 3.82% |
VinFast Auto | -160.97% | N/A | -43.11% |
Summary
General Motors beats VinFast Auto on 10 of the 14 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 VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
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