Volvo (VLVLY) vs. Nissan (NSANY) Head-To-Head Analysis

Volvo (OTCMKTS: VLVLY) and Nissan (OTCMKTS:NSANY) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Volvo and Nissan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Volvo 6.27% 21.08% 5.38%
Nissan 6.89% 13.75% 3.85%



Analyst Recommendations

This is a breakdown of recent ratings for Volvo and Nissan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Volvo 0 0 2 0 3.00
Nissan 0 0 1 0 3.00

Dividends

Volvo pays an annual dividend of $0.41 per share and has a dividend yield of 2.3%. Nissan pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Volvo pays out 33.3% of its earnings in the form of a dividend. Nissan pays out 15.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Volvo and Nissan’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Volvo $39.24 billion 0.93 $2.46 billion $1.23 14.59
Nissan $108.41 billion 0.38 $6.17 billion $2.61 8.04

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

Institutional and Insider Ownership

0.0% of Volvo shares are held by institutional investors. Comparatively, 0.1% of Nissan shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Volvo has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Nissan has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Summary

Volvo beats Nissan on 7 of the 13 factors compared between the two stocks.

Volvo Company Profile

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, and internationally. The company offers trucks for long-haulage, construction, and distribution purposes under the Volvo, UD, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis under the Volvo, Prevost, Nova Bus, UD Bus, and Sunwin brands. It also provides equipment used at construction sites, including pavers, compactors, excavators, wheel loaders, and articulated and rigid dump trucks under the brand names of Volvo, SDLG, and Terex Trucks. In addition, the company offers diesel engines for leisure boats; marine propulsion systems; drive systems and engines for propulsion and auxiliary equipment, and marine generator sets; and industrial engines for use in container terminals, mines, and other industrial applications under the Volvo Penta brand name. Further, it provides financial solutions, such as customer financing and leasing, dealer financing, and insurance; rental, preventive maintenance, assistance, and IT services; spare parts; and transport information systems. The company offers its products and services through a network of dealerships and workshops. AB Volvo (publ) was founded in 1915 and is headquartered in Gothenburg, Sweden.

Nissan Company Profile

Nissan Motor Co., Ltd. manufactures and sells vehicles and automotive parts worldwide. It sells vehicles under the Nissan, Infiniti, and Datsun brands. The company offers vehicle and vehicle parts; engines, manual transmissions, and other related component parts; automotive parts; industrial equipment engines and other related component parts, and axles; specially equipped vehicles; motorsports engines; and rechargeable lithium-ion batteries. It also provides financial services, auto credit and car leasing, card business, insurance agency, and inventory finance, as well as engages in exterior and interior design for automobiles, and operations and consulting related to the analysis and assay of raw materials. In addition, the company engages in the provision of travel, environmental and engineering, production technology, and facility services; ground and vehicle management, and information and logistics businesses; design, vehicle drawings and experiments, other engineering, electronic devices, and electronic equipment businesses; export and import of auto components and materials; and real estate businesses. Further, it is involved in promotion of motorsports, including race and motorsports event planning, and vehicle remodeling; sale of car parts and accessories for motorsports; demonstration test and commercialization study for second-life use of lithium-ion batteries for automotive use; and vehicle development of light-duty trucks. Additionally, the company imports and sells Renault vehicles and parts; and manages and plans professional soccer team and soccer schools. Nissan Motor Co., Ltd. has a strategic alliance with Mitsubishi Motors Corporation. The company was founded in 1933 and is headquartered in Yokohama, Japan.

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