Reviewing BYD (OTCMKTS:BYDDY) and Mazda Motor (OTCMKTS:MZDAF)

BYD ( OTCMKTS:BYDDY – Get a Free Report ) and Mazda Motor ( OTCMKTS:MZDAF – Get a Free Report ) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional and insider ownership

0.0% of BYD shares are held by institutional investors. Comparatively, 19.4% of Mazda Motor shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and big money managers believe the stock is poised for long-term growth.

Analyst ratings

This is a breakdown of recent recommendations and price targets for BYD and Mazda Motor, provided by MarketBeat.com.

Earnings and Rating

This table compares BYD and Mazda Motor’s revenue, earnings per share and valuation.

BYD has higher revenue and earnings than Mazda Motor. Mazda Motor trades at a lower price-to-earnings ratio than BYD, indicating that it is currently the more affordable of the two stocks.

dividends

BYD pays an annual dividend of $0.73 per share and has a dividend yield of 1.3%. Mazda Motor pays an annual dividend of $3.98 per share and has a dividend yield of 47.8%. BYD pays out 25.0% of earnings as a dividend. Mazda Motor pays out 1.2% of earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next few years. Mazda Motor is clearly the better dividend stock given its higher yield and lower payout ratio.

return

This table compares BYD and Mazda Motor’s net margins, return on equity and return on assets.

Summary

BYD beats Mazda Motor on 6 of the 10 factors comparing the two stocks.

About BYD

(Get a free report)

BYD Company Limited, together with its subsidiaries, engages in automobile and battery business in the People’s Republic of China, Hong Kong, Macao, Taiwan and internationally. The company operates in two segments: Mobile Phone Components, Assembly Service and Other Products; and Automobiles and related products and other products. The Mobile Phone Components, Assembly Services and Other Products segment manufactures and sells mobile phone components such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the production and sale of automobiles, automotive molds and components; rail transport and related business; and providing automotive leasing and after-sales services, automotive power batteries, lithium-ion batteries, photovoltaic products and iron batteries. The company develops urban rail transport business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.

About Mazda Motor

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Mazda Motor Corporation engages in the production and sale of passenger cars and commercial vehicles in Japan, China, North America, Europe and internationally. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was established in 1920 and is headquartered in Hiroshima, Japan.

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