Geely (OTCMKTS: GELYY) and Harley-Davidson (NYSE:HOG) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
This is a summary of current recommendations for Geely and Harley-Davidson, as provided by MarketBeat.
||Strong Buy Ratings
Harley-Davidson has a consensus price target of $50.71, suggesting a potential upside of 20.36%. Given Harley-Davidson’s higher probable upside, analysts plainly believe Harley-Davidson is more favorable than Geely.
Volatility & Risk
Geely has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
0.1% of Geely shares are owned by institutional investors. Comparatively, 95.9% of Harley-Davidson shares are owned by institutional investors. 0.6% of Harley-Davidson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Geely pays an annual dividend of $0.27 per share and has a dividend yield of 0.5%. Harley-Davidson pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Geely pays out 7.9% of its earnings in the form of a dividend. Harley-Davidson pays out 42.3% 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. Harley-Davidson has increased its dividend for 7 consecutive years. Harley-Davidson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Geely and Harley-Davidson’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Geely has higher revenue and earnings than Harley-Davidson. Harley-Davidson is trading at a lower price-to-earnings ratio than Geely, indicating that it is currently the more affordable of the two stocks.
This table compares Geely and Harley-Davidson’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Harley-Davidson beats Geely on 11 of the 16 factors compared between the two stocks.
Geely Company Profile
Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People's Republic of China. It engages in the research, development, production, marketing, and sale of automobiles, automobile parts, and related automobile components. The company primarily offers sedans, sport utility vehicles, and electric vehicle models. It is also involved in the research and development of automobile engines and electric hybrid engines; and provision of automobile services. The company also exports its products to Europe, the Middle East, Africa, Central and South America, and internationally. The company is headquartered in Wan Chai, Hong Kong. Geely Automobile Holdings Limited is a subsidiary of Proper Glory Holding Inc.
Harley-Davidson Company Profile
Harley-Davidson, Inc. primarily manufactures and sells cruiser and touring motorcycles. The company operates in two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment designs, manufactures, and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services. It offers motorcycle parts and accessories, such as replacement parts, and mechanical and cosmetic accessories; and general merchandise, including MotorClothes apparel and riding gear, as well as licenses the Harley-Davidson name and other trademarks. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. The Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and motorcycle parts and accessories; and retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products comprising motorcycle insurance, extended service contracts, and motorcycle maintenance protection. This segment also licenses the Harley-Davidson brand to third-party financial institutions. The company was founded in 1903 and is based in Milwaukee, Wisconsin.
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