Analyzing Mercedes-Benz Group (OTCMKTS:MBGAF) and Mitsubishi Motors (OTCMKTS:MMTOF)

Mitsubishi Motors (OTCMKTS:MMTOF) and Mercedes-Benz Group (OTCMKTS:MBGAF) are both consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

9.8% of Mitsubishi Motors shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Mitsubishi Motors and Mercedes-Benz Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Motors	N/A	N/A	N/A	$139.74	0.02
Mercedes-Benz Group	$165.81 billion	0.36	$15.43 billion	$13.71	4.10

Mercedes-Benz Group has higher revenue and earnings than Mitsubishi Motors. Mitsubishi Motors is trading at a lower price-to-earnings ratio than Mercedes-Benz Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Mitsubishi Motors and Mercedes-Benz Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Motors	0	0	0	0	0.00
Mercedes-Benz Group	0	0	0	1	4.00

Profitability

This table compares Mitsubishi Motors and Mercedes-Benz Group’s 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
Mercedes-Benz Group	8.52%	13.79%	4.84%

Summary

Mercedes-Benz Group beats Mitsubishi Motors on 7 of the 9 factors compared between the two stocks.

About Mitsubishi Motors

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.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.