Financial Analysis: General Motors (NYSE:GM) vs. Isuzu Motors (OTCMKTS:ISUZF)

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

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings for Isuzu Motors and General Motors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Isuzu Motors	0	0	0	0	0.00
General Motors	1	3	18	1	2.83

General Motors has a consensus target price of $101.41, indicating a potential upside of 17.52%. Given General Motors’ stronger consensus rating and higher probable upside, analysts plainly believe General Motors is more favorable than Isuzu Motors.

Dividends

Isuzu Motors pays an annual dividend of $15.14 per share and has a dividend yield of 95.0%. General Motors pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. Isuzu Motors pays out 11.4% 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. Isuzu Motors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Isuzu Motors	N/A	N/A	N/A	$132.79	0.12
General Motors	$185.02 billion	0.41	$2.70 billion	$1.98	43.58

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

Insider & Institutional Ownership

14.5% of Isuzu Motors shares are held by institutional investors. Comparatively, 92.7% of General Motors shares are held by institutional investors. 0.4% of General Motors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

General Motors beats Isuzu Motors on 12 of the 15 factors compared between the two stocks.

About Isuzu Motors

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, and SUVs; and marine and industrial engines. The company also supplies diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and logistics management activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Yokohama-shi, 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.