Head to Head Contrast: General Motors (GM) & Its Peers

General Motors (NYSE: GM) is one of 30 publicly-traded companies in the “Motor vehicles & car bodies” industry, but how does it compare to its competitors? We will compare General Motors to related businesses based on the strength of its risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent ratings and price targets for General Motors and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Motors 2 10 9 0 2.33
General Motors Competitors 439 1254 1623 110 2.41

General Motors presently has a consensus target price of $44.47, suggesting a potential upside of 22.37%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 12.55%. Given General Motors’ higher possible upside, analysts plainly believe General Motors is more favorable than its competitors.

Dividends

General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. General Motors pays out 23.0% of its earnings in the form of a dividend. As a group, “Motor vehicles & car bodies” companies pay a dividend yield of 1.7% and pay out 24.0% of their earnings in the form of a dividend. General Motors is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

73.6% of General Motors shares are owned by institutional investors. Comparatively, 65.7% of shares of all “Motor vehicles & car bodies” companies are owned by institutional investors. 0.0% of General Motors shares are owned by insiders. Comparatively, 8.5% of shares of all “Motor vehicles & car bodies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares General Motors and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Motors -2.58% 22.86% 4.30%
General Motors Competitors -14.13% -0.28% -3.83%

Earnings and Valuation

This table compares General Motors and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
General Motors $145.59 billion -$3.86 billion 5.49
General Motors Competitors $62.83 billion $2.64 billion 15.56

General Motors has higher revenue, but lower earnings than its competitors. General Motors is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

General Motors has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, General Motors’ competitors have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Summary

General Motors beats its competitors on 9 of the 15 factors compared.

About General Motors

General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.

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