Reviewing General Motors (GM) and Daimler (DDAIF)

General Motors (NYSE: GM) and Daimler (OTCMKTS:DDAIF) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility & Risk

General Motors has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Daimler has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for General Motors and Daimler, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Motors 2 10 10 0 2.36
Daimler 0 1 3 0 2.75

General Motors presently has a consensus target price of $45.83, suggesting a potential upside of 19.78%. Given General Motors’ higher possible upside, equities analysts clearly believe General Motors is more favorable than Daimler.

Dividends

General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 4.0%. Daimler does not pay a dividend. General Motors pays out 23.0% of its earnings in the form of a dividend.

Profitability

This table compares General Motors and Daimler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Motors -3.76% 23.03% 4.11%
Daimler 6.10% 16.52% 4.11%

Earnings and Valuation

This table compares General Motors and Daimler’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Motors $145.59 billion 0.37 -$3.86 billion $6.62 5.78
Daimler $185.63 billion 0.46 $11.90 billion $11.12 7.17

Daimler has higher revenue and earnings than General Motors. General Motors is trading at a lower price-to-earnings ratio than Daimler, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

73.1% of General Motors shares are owned by institutional investors. Comparatively, 0.0% of Daimler shares are owned by institutional investors. 0.0% of General Motors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Daimler beats General Motors on 9 of the 15 factors compared between the two stocks.

About General Motors

General Motors Company, together with its subsidiaries, designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names. The company also sells cars, trucks, and crossovers 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, as well as information technology services. Further, the company provides automotive financing services. General Motors Company was founded in 1897 and is based in Detroit, Michigan.

About Daimler

Daimler AG, together its subsidiaries, develops and manufactures passenger cars, trucks, vans, and buses in Germany and internationally. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services segments. The Mercedes-Benz Cars segment offers premium vehicles of the Mercedes-Benz brand, including the Mercedes-AMG and Mercedes-Maybach brands; and small cars under the smart and Mercedes me brands, as well as electric mobility products under the EQ brand. The Daimler Trucks segment distributes its trucks under the Mercedes-Benz, Freightliner, Western Star, FUSO, and BharatBenz brands; and buses under the Thomas Built Buses and FUSO brands. The Mercedes-Benz Vans segment primarily sells vans under the MercedesBenz and Freightliner brands. The Daimler Buses segment sells completely built-up buses under the MercedesBenz and Setra brands, as well as produces and sells bus chassis. The Daimler Financial Services segment offers tailored financing and leasing packages for end-customers and dealers; and automotive insurance brokerage, banking, and fleet management services, as well as mobility services primarily under the moovel, mytaxi, and car2go brands. The company also sells vehicle related spare parts and accessories. Daimler AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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