General Motors (NYSE:GM) and Brilliance China Automotive (OTCMKTS:BCAUY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Volatility and Risk
General Motors has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Brilliance China Automotive has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.
This table compares General Motors and Brilliance China Automotive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brilliance China Automotive||N/A||N/A||N/A|
General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Brilliance China Automotive pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. General Motors pays out 23.2% of its earnings in the form of a dividend. Brilliance China Automotive pays out 9.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional & Insider Ownership
77.6% of General Motors shares are owned by institutional investors. 0.4% of General Motors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares General Motors and Brilliance China Automotive’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Motors||$147.05 billion||0.38||$8.01 billion||$6.54||6.06|
|Brilliance China Automotive||$785.10 million||7.09||$647.66 million||$1.28||8.62|
General Motors has higher revenue and earnings than Brilliance China Automotive. General Motors is trading at a lower price-to-earnings ratio than Brilliance China Automotive, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for General Motors and Brilliance China Automotive, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brilliance China Automotive||0||1||1||0||2.50|
General Motors presently has a consensus target price of $47.86, suggesting a potential upside of 20.67%. Given General Motors’ stronger consensus rating and higher possible upside, analysts plainly believe General Motors is more favorable than Brilliance China Automotive.
General Motors beats Brilliance China Automotive on 12 of the 16 factors compared between the two stocks.
General Motors Company Profile
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, GM Cruise, and GM Financial. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names. The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers connected safety, security, and mobility solutions for retail and fleet customers, including automatic crash response, stolen vehicle assistance, roadside assistance, dealer maintenance notifications, remote door unlock, turn-by-turn navigation, vehicle location services, hands-free calling, smart driver, and marketplace, as well as connectivity packages comprising remote vehicle access through a mobile application, on-demand vehicle diagnostics, connected navigation, and 4G LTE wireless connectivity. Further, the company provides automotive financing services. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
Brilliance China Automotive Company Profile
Brilliance China Automotive Holdings Limited, an investment holding company, manufactures and sells minibuses and automotive components in the People's Republic of China. The company offers its minibuses under the JinBei and Granse brands, as well as multi-purpose vehicles under the Huasong brand. Its automotive components include mouldings, seats, axles, safety and airbag systems, interior decoration products, and engines for minibuses, sedans, sport utility vehicles, light duty trucks, etc. The company also offers sport activity vehicles. Brilliance China Automotive Holdings Limited has strategic partnerships and alliances with BMW, Toyota, Magna, Bosch, Continental, Delphi, TI Automotive, and Johnson Controls. The company was founded in 1949 and is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange.
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