Tata Motors (TTM) vs. General Motors (GM) Financial Analysis
Tata Motors (NYSE: TTM) and General Motors (NYSE:GM) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
This is a breakdown of current ratings and price targets for Tata Motors and General Motors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tata Motors presently has a consensus price target of $30.00, suggesting a potential upside of 2.04%. General Motors has a consensus price target of $39.39, suggesting a potential upside of 12.77%. Given General Motors’ higher possible upside, analysts clearly believe General Motors is more favorable than Tata Motors.
Earnings & Valuation
This table compares Tata Motors and General Motors’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tata Motors||$40.47 billion||0.49||$4.59 billion||$1.63||18.04|
|General Motors||$170.23 billion||0.30||$21.49 billion||$5.74||6.09|
General Motors has higher revenue and earnings than Tata Motors. General Motors is trading at a lower price-to-earnings ratio than Tata Motors, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Tata Motors has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, General Motors has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 4.4%. Tata Motors does not pay a dividend. General Motors pays out 26.5% of its earnings in the form of a dividend. General Motors has raised its dividend for 2 consecutive years.
Institutional and Insider Ownership
13.3% of Tata Motors shares are held by institutional investors. Comparatively, 76.0% of General Motors shares are held by institutional investors. 0.0% of General Motors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Tata Motors and General Motors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
General Motors beats Tata Motors on 12 of the 18 factors compared between the two stocks.
About Tata Motors
Tata Motors Limited is an automobile company. The Company is engaged in manufacture of motor vehicles. The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company’s segments include automotive operations and all other operations. The Company’s automotive segment operations include all activities relating to the development, design, manufacture, assembly and sale of vehicles, including vehicle financing, as well as sale of related parts and accessories. In the automotive segment, the Company manufactures and sells passenger cars, utility vehicles, light commercial vehicles, and medium and heavy commercial vehicles. The Company’s all other operations segment mainly includes information technology (IT) services, and machine tools and factory automation services. The Company operates in over 160 countries across the world.
About General Motors
General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.
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