Critical Comparison: Mitsubishi Motors (MMTOF) and Its Competitors

Mitsubishi Motors (OTCMKTS:MMTOF) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it compare to its peers? We will compare Mitsubishi Motors to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mitsubishi Motors and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Motors	1	0	0	0	1.00
Mitsubishi Motors Competitors	2045	5043	6310	188	2.34

As a group, “Automobiles” companies have a potential upside of 73.26%. Given Mitsubishi Motors’ peers stronger consensus rating and higher probable upside, analysts clearly believe Mitsubishi Motors has less favorable growth aspects than its peers.

Profitability

This table compares Mitsubishi Motors and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Motors	N/A	N/A	N/A
Mitsubishi Motors Competitors	-1,522.48%	-126.75%	-11.69%

Valuation and Earnings

This table compares Mitsubishi Motors and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitsubishi Motors	N/A	N/A	0.01
Mitsubishi Motors Competitors	$53.36 billion	$1.13 billion	6.68

Mitsubishi Motors’ peers have higher revenue and earnings than Mitsubishi Motors. Mitsubishi Motors 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.

Insider and Institutional Ownership

9.8% of Mitsubishi Motors shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Automobiles” companies are owned by institutional investors. 14.6% of shares of all “Automobiles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Mitsubishi Motors pays an annual dividend of $17.92 per share and has a dividend yield of 861.6%. Mitsubishi Motors pays out 12.8% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 107.0% and pay out 7.2% of their earnings in the form of a dividend.

Summary

Mitsubishi Motors peers beat Mitsubishi Motors on 9 of the 13 factors compared.

Mitsubishi Motors Company Profile

Mitsubishi Motors Corporation, together with its subsidiaries, engages in the development, production, and sale of passenger vehicles, and its parts and components in Japan, Europe, North America, Oceania, the rest of Asia, and internationally. Its products include EVs/PHEVs, SUVs, pickup trucks, MPVs, and cars under the Mitsubishi brand. It is also involved in automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; and manufacturing of automobile engines and transmissions, and press parts. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.