Bayerische Motoren Werke (BAMXF) versus Its Rivals Critical Review

Bayerische Motoren Werke (OTCMKTS:BAMXF) is one of 119 public companies in the “Automobiles” industry, but how does it contrast to its peers? We will compare Bayerische Motoren Werke to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.

Volatility & Risk

Bayerische Motoren Werke has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bayerische Motoren Werke and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bayerische Motoren Werke	$150.95 billion	$8.25 billion	5.52
Bayerische Motoren Werke Competitors	$1,483.15 billion	$1.13 billion	6.91

Bayerische Motoren Werke’s peers have higher revenue, but lower earnings than Bayerische Motoren Werke. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

39.1% of shares of all “Automobiles” companies are owned by institutional investors. 13.9% of shares of all “Automobiles” companies are owned 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.

Analyst Ratings

This is a summary of current ratings and price targets for Bayerische Motoren Werke and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	1	3	0	1	2.20
Bayerische Motoren Werke Competitors	2047	5044	6310	188	2.34

As a group, “Automobiles” companies have a potential upside of 72.24%. Given Bayerische Motoren Werke’s peers stronger consensus rating and higher probable upside, analysts plainly believe Bayerische Motoren Werke has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	4.92%	6.51%	2.39%
Bayerische Motoren Werke Competitors	-1,522.48%	-126.76%	-11.69%

Summary

Bayerische Motoren Werke peers beat Bayerische Motoren Werke on 8 of the 13 factors compared.

Bayerische Motoren Werke Company Profile

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.