Contrasting Volkswagen (OTCMKTS:VWAGY) & Bayerische Motoren Werke (OTCMKTS:BAMXF)

Volkswagen (OTCMKTS:VWAGY) and Bayerische Motoren Werke (OTCMKTS:BAMXF) 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 institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Volkswagen and Bayerische Motoren Werke, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volkswagen	0	2	1	1	2.75
Bayerische Motoren Werke	1	3	0	1	2.20

Profitability

This table compares Volkswagen and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volkswagen	1.96%	3.18%	0.99%
Bayerische Motoren Werke	5.22%	7.20%	2.63%

Valuation & Earnings

This table compares Volkswagen and Bayerische Motoren Werke”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volkswagen	$364.13 billion	0.15	$8.29 billion	$1.41	7.50
Bayerische Motoren Werke	$150.95 billion	0.37	$8.25 billion	$12.97	7.42

Volkswagen has higher revenue and earnings than Bayerische Motoren Werke. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than Volkswagen, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Volkswagen has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Summary

Volkswagen beats Bayerische Motoren Werke on 6 of the 11 factors compared between the two stocks.

About Volkswagen

Volkswagen AG manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles, and related parts; and offers motorcycles. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services. It sells its products under the Volkswagen Passenger Cars, koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brands. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.