Critical Comparison: Yamaha Motor (YAMHF) versus Harley-Davidson (HOG)

Yamaha Motor (OTCMKTS: YAMHF) and Harley-Davidson (NYSE:HOG) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

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95.9% of Harley-Davidson shares are owned by institutional investors. 0.6% of Harley-Davidson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Yamaha Motor and Harley-Davidson’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yamaha Motor $14.90 billion 0.72 $930.76 million $2.66 11.45
Harley-Davidson $4.92 billion 1.44 $521.75 million $3.50 12.02

Yamaha Motor has higher revenue and earnings than Harley-Davidson. Yamaha Motor is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Yamaha Motor and Harley-Davidson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamaha Motor N/A N/A N/A
Harley-Davidson 10.62% 31.23% 5.92%

Volatility and Risk

Yamaha Motor has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Yamaha Motor and Harley-Davidson, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamaha Motor 0 1 0 0 2.00
Harley-Davidson 1 13 6 0 2.25

Harley-Davidson has a consensus target price of $51.50, indicating a potential upside of 22.44%. Given Harley-Davidson’s stronger consensus rating and higher probable upside, analysts plainly believe Harley-Davidson is more favorable than Yamaha Motor.

Dividends

Harley-Davidson pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Yamaha Motor does not pay a dividend. Harley-Davidson pays out 42.3% of its earnings in the form of a dividend. Harley-Davidson has raised its dividend for 7 consecutive years.

Summary

Harley-Davidson beats Yamaha Motor on 12 of the 16 factors compared between the two stocks.

About Harley-Davidson

Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) and the Financial Services. The Motorcycles segment consists of HDMC, which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise and related services. The Company manufactures and sells at wholesale cruiser and touring motorcycles. The Financial Services segment consists of HDFS, which provides wholesale and retail financing and insurance-related programs to the Harley-Davidson dealers and their retail customers. HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans for the purchase of Harley-Davidson motorcycles.

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