The Shyft Group (NASDAQ:SHYF) and Toyota Motor (NYSE:TM) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for The Shyft Group and Toyota Motor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Shyft Group 0 0 0 0 N/A
Toyota Motor 1 1 2 0 2.25

Risk and Volatility

The Shyft Group has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Toyota Motor has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares The Shyft Group and Toyota Motor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Shyft Group -1.43% 23.59% 10.15%
Toyota Motor 5.78% 7.41% 2.89%

Earnings and Valuation

This table compares The Shyft Group and Toyota Motor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Shyft Group $756.54 million 0.94 -$12.57 million $1.24 16.15
Toyota Motor $275.36 billion 0.69 $19.10 billion $13.42 9.99

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

Dividends

The Shyft Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Toyota Motor pays an annual dividend of $3.97 per share and has a dividend yield of 3.0%. The Shyft Group pays out 8.1% of its earnings in the form of a dividend. Toyota Motor pays out 29.6% 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. Toyota Motor has increased its dividend for 1 consecutive years. Toyota Motor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

74.6% of The Shyft Group shares are held by institutional investors. Comparatively, 1.2% of Toyota Motor shares are held by institutional investors. 4.0% of The Shyft Group shares are held by 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

Toyota Motor beats The Shyft Group on 8 of the 15 factors compared between the two stocks.

About The Shyft Group

The Shyft Group, Inc., through its subsidiary Spartan Motors USA, Inc., manufactures and assembles specialty vehicles for the commercial vehicle and recreational vehicle industries in the United States and internationally. It operates through two segments, Fleet Vehicles and Services (FVS), and Specialty Chassis and Vehicles (SCV). The FVS segment manufactures and sells various commercial vehicles that are used in the e-commerce/last mile/parcel delivery, beverage and grocery delivery, laundry and linen, mobile retail, and trades and construction industries. This segment markets its commercial vehicles under the Aeromaster, Velocity, Ultimate, Trademaster, Metromaster, Utilivan, Utilimaster Upfit Services, and Reach brand names. It also installs specialty interior and exterior up-fit equipment for walk-in vans, truck bodies, and passenger vans under Specialty Up-fit name; and provides aftermarket support, including parts sales and field services. The SCV engages in the engineering and manufacture of luxury class A diesel motor home chassis; manufacture and assemble of truck body options for various trades, service truck bodies, stake body trucks, contractor trucks, and dump bed trucks; and provision of chassis and complete vehicle assembly services for military vehicles, drill rigs, shuttle bus chassis, and other specialty chassis and vehicles. This segment also offers assembly services for Isuzu N-gas and F-series chassis; and parts and accessories for its motor home, defense, and specialty chassis, as well as maintenance and repair services for its motor home and specialty chassis. The company sells its products to commercial users, original equipment manufacturers, dealers, individual end users, and municipalities and other governmental entities. The company was formerly known as Spartan Motors, Inc. and changed its name to The Shyft Group, Inc. in June 2020. The Shyft Group, Inc. was founded in 1975 and is headquartered in Novi, Michigan.

About Toyota Motor

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates through Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius, Alphard, Vellfire, Sienta, RX-HV, Auris, Prius PHV, C-HR, LC, Camry, JPN TAXI, Avalon, Corolla HB, Crown, and Century names; fuel cell vehicles under the MIRAI and SORA names; and conventional engine vehicles, including subcompact and compact cars under the Corolla, Yaris, Vitz, Aygo, Prius C, Aqua, Passo, Roomy, Tank, Etios, Vios, AGYA, Rush, and Yaris iA names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars under the Camry, REIZ, and Avensis names; luxury cars under the Lexus, Avalon, and Crown names; Century limousines; sports cars under the 86, Scion FR-S, RC coupe, and LC names; and sport-utility vehicles under the Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser, and Land Cruiser names. In addition, the company offers pickup trucks under the Tacoma and Tundra names; minivans under the Alphard, Vellfire, Noah/Voxy, Esquire, Calya, Estima, Sienta, and Sienna names; large, medium, and small trucks; and large, medium, small, and micro-buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and manufactures and sells prefabricated housing. Additionally, the company engages in the information technology related businesses comprising operation of a Web portal for automobile information known as GAZOO.com. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.

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