NIO (NYSE:NIO) versus Isuzu Motors (OTCMKTS:ISUZY) Financial Review

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

Insider & Institutional Ownership

48.5% of NIO shares are held by institutional investors. 1.0% of NIO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Isuzu Motors and NIO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Isuzu Motors	1	1	1	0	2.00
NIO	2	7	6	0	2.27

NIO has a consensus target price of $5.78, indicating a potential upside of 80.84%. Given NIO’s stronger consensus rating and higher probable upside, analysts plainly believe NIO is more favorable than Isuzu Motors.

Valuation and Earnings

This table compares Isuzu Motors and NIO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Isuzu Motors	$23.11 billion	0.39	$890.18 million	$1.35	9.59
NIO	$114.11 billion	0.07	-$2.14 billion	($0.27)	-11.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Isuzu Motors	4.08%	8.71%	3.98%
NIO	-3.95%	-111.37%	-3.62%

Risk & Volatility

Isuzu Motors has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, NIO has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

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 NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.