Critical Contrast: Bayerische Motoren Werke (OTCMKTS:BAMXF) and Gogoro (NASDAQ:GGR)

Bayerische Motoren Werke (OTCMKTS:BAMXF) and Gogoro (NASDAQ:GGR) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Bayerische Motoren Werke and Gogoro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke	$150.95 billion	0.24	$8.25 billion	$12.12	5.21
Gogoro	$281.48 million	0.17	-$79.97 million	($3.16)	-1.01

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bayerische Motoren Werke and Gogoro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	1	2	0	2	2.60
Gogoro	1	0	0	0	1.00

Volatility and Risk

Bayerische Motoren Werke has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Gogoro has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	4.92%	6.50%	2.37%
Gogoro	-16.98%	-41.32%	-7.86%

Institutional and Insider Ownership

15.9% of Gogoro shares are held by institutional investors. 4.8% of Gogoro shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Bayerische Motoren Werke beats Gogoro on 10 of the 13 factors compared between the two stocks.

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.

About Gogoro

Gogoro Inc. provides battery swapping services in Taiwan, India, and internationally. It also develops Swap and Go battery system that delivers full power to electric-powered two-wheelers. In addition, the company offers battery swapping technology in the form of hardware, software, and service, including Gogoro Smart Batteries, GoStation, Gogoro Network Software & Battery Management Systems, Smartscooter, GoReward, and related components and kits. The company was incorporated in 2011 and is based in Taipei, Taiwan.