Critical Comparison: SJM (OTCMKTS:SJMHF) vs. BYD (OTCMKTS:BYDDY)

BYD (OTCMKTS:BYDDY) and SJM (OTCMKTS:SJMHF) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BYD	4.96%	22.72%	5.14%
SJM	N/A	N/A	N/A

Institutional and Insider Ownership

0.0% of BYD shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares BYD and SJM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BYD	$85.22 billion	1.33	$4.25 billion	$2.92	26.05
SJM	$2.76 billion	0.10	-$995.86 million	N/A	N/A

BYD has higher revenue and earnings than SJM.

Volatility & Risk

BYD has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, SJM has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for BYD and SJM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD	0	0	2	0	3.00
SJM	1	1	0	0	1.50

Summary

BYD beats SJM on 9 of the 10 factors compared between the two stocks.

About BYD

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

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.