Contrasting Mahindra & Mahindra (OTCMKTS:MAHMF) & Mercedes-Benz Group (OTCMKTS:MBGAF)

Mahindra & Mahindra (OTCMKTS:MAHMF) and Mercedes-Benz Group (OTCMKTS:MBGAF) are both consumer cyclical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

2.4% of Mahindra & Mahindra shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mahindra & Mahindra and Mercedes-Benz Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mahindra & Mahindra	N/A	N/A	N/A
Mercedes-Benz Group	8.52%	13.79%	4.84%

Valuation & Earnings

This table compares Mahindra & Mahindra and Mercedes-Benz Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mahindra & Mahindra	N/A	N/A	N/A	$75.83	0.43
Mercedes-Benz Group	$165.81 billion	0.37	$15.43 billion	$13.71	4.23

Mercedes-Benz Group has higher revenue and earnings than Mahindra & Mahindra. Mahindra & Mahindra is trading at a lower price-to-earnings ratio than Mercedes-Benz Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Mahindra & Mahindra and Mercedes-Benz Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mahindra & Mahindra	0	0	0	0	0.00
Mercedes-Benz Group	0	0	0	1	4.00

Summary

Mercedes-Benz Group beats Mahindra & Mahindra on 7 of the 9 factors compared between the two stocks.

About Mahindra & Mahindra

Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. The company operates through Automotive, Farm Equipment, Financial Services, Real Estate, Hospitality, and Others segments. It offers passenger and commercial vehicles, trucks, buses, vans, cars, utility vehicles, and electric vehicles; watercrafts; motorcycles, scooters, and mopeds; manufactures, assembles, and maintains various kinds of aircrafts and aircraft components, and aerostructures; offers construction equipment, such as backhoe loaders under the Mahindra EarthMaster brand; and road construction equipment comprising motor graders under the Mahindra RoadMaster brand. It is also involved in the provision of farm equipment, including tractors; and manufacture and distribute the SMART Seeder Mini-MAX in collaboration with Clean Seed Capital Group Ltd., as well as engages in renewable energy business. Further, the company offers financial services comprising retail and other loans, SME finance, housing finance, mutual funds, and life and non-life insurance broking services, as well as vehicle and equipment financing; provides logistics services; power backup solutions, such as diesel and gas generators; and technology services, including business process services, integrated engineering services, infrastructure and cloud services, application development and maintenance services. Additionally, it engages in the sale of timeshare and vacation ownership through its resorts; develops and sells residential properties, and engages in the development, management, and operation of commercial complexes; and processing and trading of steel for automotive, non-automotive, and power industries, as well as offers agriculture products comprising seeds, crop care products, micro-irrigation products, and pumps; and exports grapes. The company was incorporated in 1945 and is based in Mumbai, India.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.