Toyota Motor (NYSE:TM) and VinFast Auto (NASDAQ:VFS) Head to Head Review

Toyota Motor (NYSE:TM) and VinFast Auto (NASDAQ:VFS) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares Toyota Motor and VinFast Auto’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Motor	$275.02 billion	1.15	$18.14 billion	$23.47	9.97
VinFast Auto	$1.20 billion	N/A	-$2.40 billion	($0.82)	-3.57

Toyota Motor has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Toyota Motor, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

1.5% of Toyota Motor shares are owned by institutional investors. 16.2% of VinFast Auto shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Toyota Motor and VinFast Auto, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	0	2	1	0	2.33
VinFast Auto	0	0	4	0	3.00

VinFast Auto has a consensus price target of $9.75, indicating a potential upside of 233.90%. Given VinFast Auto’s stronger consensus rating and higher possible upside, analysts clearly believe VinFast Auto is more favorable than Toyota Motor.

Volatility and Risk

Toyota Motor has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Toyota Motor and VinFast Auto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	10.22%	14.13%	5.56%
VinFast Auto	N/A	N/A	-44.67%

Summary

Toyota Motor beats VinFast Auto on 8 of the 12 factors compared between the two stocks.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.