Financial Review: Toyota Motor (TM) versus Its Competitors

Toyota Motor (NYSE:TM) is one of 118 public companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Toyota Motor to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Earnings & Valuation

This table compares Toyota Motor and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toyota Motor	$336.70 billion	$25.40 billion	9.69
Toyota Motor Competitors	$2,021.94 billion	$1.13 billion	6.35

Toyota Motor’s competitors have higher revenue, but lower earnings than Toyota Motor. Toyota Motor is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Toyota Motor pays an annual dividend of $5.60 per share and has a dividend yield of 2.6%. Toyota Motor pays out 25.5% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 109.4% and pay out 7.2% of their earnings in the form of a dividend. Toyota Motor lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Toyota Motor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toyota Motor	8.14%	10.83%	4.14%
Toyota Motor Competitors	-1,480.18%	-127.90%	-12.02%

Risk and Volatility

Toyota Motor has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Toyota Motor’s competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Toyota Motor and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toyota Motor	0	3	1	4	3.12
Toyota Motor Competitors	2142	5137	6397	191	2.33

Toyota Motor currently has a consensus target price of $260.00, indicating a potential upside of 22.32%. As a group, “Automobiles” companies have a potential upside of 78.30%. Given Toyota Motor’s competitors higher probable upside, analysts clearly believe Toyota Motor has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

1.5% of Toyota Motor shares are owned by institutional investors. Comparatively, 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Toyota Motor competitors beat Toyota Motor on 8 of the 15 factors compared.

Toyota Motor Company Profile

Toyota Motor Corporation is a Japanese automotive manufacturer founded in 1937 by Kiichiro Toyoda. The company designs, manufactures, and sells vehicles under the Toyota and Lexus brands, including passenger cars, SUVs, trucks, and commercial vehicles. Toyota offers vehicles with a range of powertrains, including conventional engines, hybrids, plug-in hybrids, battery-electric systems, and fuel-cell technology. Its other businesses include automotive financing and services related to mobility and vehicle ownership.