Head to Head Review: Subaru (FUJHY) and The Competition

Subaru (OTCMKTS: FUJHY) is one of 30 public companies in the “Motor vehicles & car bodies” industry, but how does it weigh in compared to its rivals? We will compare Subaru to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, profitability and earnings.

Analyst Ratings

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This is a summary of recent recommendations and price targets for Subaru and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Subaru 0 0 0 0 N/A
Subaru Competitors 439 1265 1629 110 2.41

As a group, “Motor vehicles & car bodies” companies have a potential upside of 10.12%. Given Subaru’s rivals higher probable upside, analysts clearly believe Subaru has less favorable growth aspects than its rivals.

Profitability

This table compares Subaru and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Subaru 5.91% 19.61% 10.45%
Subaru Competitors -14.13% -0.28% -3.83%

Institutional and Insider Ownership

0.1% of Subaru shares are owned by institutional investors. Comparatively, 65.7% of shares of all “Motor vehicles & car bodies” companies are owned by institutional investors. 8.1% 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 stock will outperform the market over the long term.

Valuation and Earnings

This table compares Subaru and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Subaru $29.24 billion $2.63 billion 10.49
Subaru Competitors $62.83 billion $2.64 billion 15.98

Subaru’s rivals have higher revenue and earnings than Subaru. Subaru is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Subaru has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Subaru’s rivals have a beta of 1.00, indicating that their average share price is 0% more volatile than the S&P 500.

Dividends

Subaru pays an annual dividend of $0.25 per share and has a dividend yield of 1.5%. Subaru pays out 15.7% of its earnings in the form of a dividend. As a group, “Motor vehicles & car bodies” companies pay a dividend yield of 1.4% and pay out 19.8% of their earnings in the form of a dividend. Subaru is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Subaru rivals beat Subaru on 7 of the 12 factors compared.

Subaru Company Profile

SUBARU CORPORATION, formerly Fuji Heavy Industries Ltd., is a manufacturer of Subaru automobiles. The Company’s segments include Automobiles, Aerospace, Industrial products and Other. The Automobile segment manufactures and sells vehicles and related products. The Aerospace segment manufactures aircrafts, parts of space-related devices. The Industrial products segment manufactures and sells Robin engines and related products. The Other segment consists of garbage collection vehicles, specialized vehicles and real estate lease. It offers a platform, called the Subaru Global Platform, which is a Subaru technology for unifying development of all of its models under a single platform design. It manufactures, repairs and sells airplanes aerospace-related machinery and their components. It also manufactures, sells and repairs generators, engine-equipped machinery, agricultural machinery, construction machinery other machine tools and their components.

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