Critical Analysis: Mitsubishi Motors (MMTOF) and The Competition

Mitsubishi Motors (OTCMKTS:MMTOF) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it contrast to its competitors? We will compare Mitsubishi Motors to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Mitsubishi Motors and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Motors	1	0	0	0	1.00
Mitsubishi Motors Competitors	2031	5019	6299	184	2.34

As a group, “Automobiles” companies have a potential upside of 82.47%. Given Mitsubishi Motors’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Mitsubishi Motors has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Motors	N/A	N/A	N/A
Mitsubishi Motors Competitors	-1,371.68%	-100.36%	-10.38%

Dividends

Mitsubishi Motors pays an annual dividend of $17.92 per share and has a dividend yield of 716.8%. Mitsubishi Motors pays out 12.8% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 111.3% and pay out 7.2% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Mitsubishi Motors and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Motors	N/A	N/A	0.02
Mitsubishi Motors Competitors	$53.42 billion	$1.13 billion	5.47

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

Insider and Institutional Ownership

9.8% of Mitsubishi Motors shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are owned by institutional investors. 13.9% of shares of all “Automobiles” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Mitsubishi Motors competitors beat Mitsubishi Motors on 9 of the 13 factors compared.

About Mitsubishi Motors

Mitsubishi Motors Corporation, together with its subsidiaries, engages in the development, production, and sale of passenger vehicles, and its parts and components in Japan, Europe, North America, Oceania, the rest of Asia, and internationally. Its products include EVs/PHEVs, SUVs, pickup trucks, MPVs, and cars under the Mitsubishi brand. It is also involved in automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; and manufacturing of automobile engines and transmissions, and press parts. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.