Mitsubishi Motors (OTCMKTS:MMTOF – Get Rating) and NFI Group (OTCMKTS:NFYEF – Get Rating) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
9.8% of Mitsubishi Motors shares are owned by institutional investors. Comparatively, 28.0% of NFI Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Mitsubishi Motors and NFI Group’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mitsubishi Motors | N/A | N/A | N/A | $139.74 | 0.03 |
| NFI Group | N/A | N/A | N/A | $0.53 | 11.04 |
Profitability
This table compares Mitsubishi Motors and NFI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mitsubishi Motors | N/A | N/A | N/A |
| NFI Group | N/A | N/A | N/A |
Dividends
Mitsubishi Motors pays an annual dividend of $17.92 per share and has a dividend yield of 482.5%. NFI Group pays an annual dividend of $0.54 per share and has a dividend yield of 9.2%. Mitsubishi Motors pays out 12.8% of its earnings in the form of a dividend. NFI Group pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mitsubishi Motors is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and target prices for Mitsubishi Motors and NFI Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mitsubishi Motors | 0 | 2 | 1 | 0 | 2.33 |
| NFI Group | 1 | 1 | 0 | 0 | 1.50 |
NFI Group has a consensus target price of $12.67, suggesting a potential upside of 117.27%. Given NFI Group’s higher possible upside, analysts clearly believe NFI Group is more favorable than Mitsubishi Motors.
Summary
Mitsubishi Motors beats NFI Group on 5 of the 8 factors compared between the two stocks.
About Mitsubishi Motors
Mitsubishi Motors Corp. engages in the development, design, manufacture, assembly, sales, purchase, and import of automobiles and its related parts. It operates through the following segments: Automobile and Financial Services. The Automobile segment manufactures and sells general and small-sized passenger vehicles, mini vehicles, sports utility vehicles, as well as the inspection and maintenance of new vehicles in domestic market. The Financial Services segment includes automobile leasing and sales finance business. The company was founded on April 22, 1970 and is headquartered in Tokyo, Japan.
About NFI Group
NFI Group, Inc. engages in the manufacture of zero-emission buses and coaches. The offers a suite of mass transportation solutions under the following brands: New Flyer, Alexander Dennis Limited, Plaxton, MCI, ARBOC, and NFI Parts. It operates through the Manufacturing, and Aftermarket segments. The Manufacturing segment involves in the production, service, and support of new transit buses, coaches, medium-duty, and cutaway buses. The Aftermarket segment sells aftermarket parts for transit buses and motor coaches, and medium-duty and cutaway buses. The company was founded by John Coval in 1930 and is headquartered in Winnipeg, Canada.
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