Reviewing Suzuki Motor (OTCMKTS:SZKMY) and General Motors (NYSE:GM)

Suzuki Motor (OTCMKTS:SZKMY) and General Motors (NYSE:GM) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Suzuki Motor and General Motors”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzuki Motor	$41.80 billion	0.59	$2.90 billion	$6.96	7.40
General Motors	$185.02 billion	0.41	$2.70 billion	$1.98	43.22

Suzuki Motor has higher earnings, but lower revenue than General Motors. Suzuki Motor is trading at a lower price-to-earnings ratio than General Motors, indicating that it is currently the more affordable of the two stocks.

Dividends

Suzuki Motor pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. General Motors pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. Suzuki Motor pays out 11.5% of its earnings in the form of a dividend. General Motors pays out 36.4% 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. General Motors has raised its dividend for 3 consecutive years. Suzuki Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Suzuki Motor and General Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzuki Motor	7.85%	12.57%	7.86%
General Motors	1.05%	18.18%	4.17%

Insider & Institutional Ownership

0.0% of Suzuki Motor shares are owned by institutional investors. Comparatively, 92.7% of General Motors shares are owned by institutional investors. 0.4% of General Motors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Suzuki Motor and General Motors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzuki Motor	0	1	1	1	3.00
General Motors	1	3	18	1	2.83

General Motors has a consensus price target of $101.41, indicating a potential upside of 18.49%. Given General Motors’ higher possible upside, analysts clearly believe General Motors is more favorable than Suzuki Motor.

Volatility and Risk

Suzuki Motor has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, General Motors has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Summary

General Motors beats Suzuki Motor on 9 of the 17 factors compared between the two stocks.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.

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.