Volkswagen vs Daimler AG – The German Auto Giants

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Volkswagen AG
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Volkswagen AG (OTCMKTS: VWAGY) is a German auto giant and one of biggest automobile companies in the world. The company’s stock currently trades around $16. It offers passenger and commercial vehicles under multiple brands like Volkswagen, Skoda, Porsche, Bentley, Audi, SEAT, Lamborghini, and Bugatti. They also provide a Financial Services division to support the sales of the Group’s automotive brands. Its product portfolio primarily consists of tailored financing and leasing packages for customers and dealers.

Volkswagen’s main competitors are companies like Daimler AG, Toyota, Ford, General Motors, Tata Motors, and Honda.

In this analysis we see how Volkswagen’s Key Metrics compare against another German automobile company, i.e. Daimler AG. For detailed analysis with our interactive dashboard – How does Volkswagen Compare to Daimler AG with respect to Revenue, Sales Volume and Earnings? In addition, here is more Consumer Discretionary data.

How does Volkswagen’s Total Revenue Compare with Daimler AG’s Total Revenue?

  • Volkswagen revenue has seen a positive growth over the past few of years as it rose from $236.7 billion in 2015 to $268.8 billion in 2018. Trefis estimates Revenue to go up by around 2.7% to $276 billion in 2019.
  • Meanwhile, Daimler saw a rise in revenue for a few years before falling to $190.8 billion in 2018 primarily due to a fall in product pricing. Trefis estimates Revenue to go up by around 2.2% to $195 billion in 2019 primarily on the back of better Daimler Truck segment Sales.

Volkswagen and Daimler’s Total Revenue can be divided into Automotive and Financial Services:

  • Volkswagen automotive revenue has seen a positive growth over the past few of years as it rose from $204.1 billion in 2015 to $229.2 billion in 2018. Trefis estimates Revenue to go up by around 2.3% to $234.4 billion in 2019.
  • Volkswagen financial services revenue saw a steady growth over the past few of years as it rose from $32.6 billion in 2015 to $39.6 billion in 2018. Trefis estimates Revenue to go up by around 5% to $41.6 billion in 2019.
  • Meanwhile, Daimler’s automotive segment saw a rise in revenue for a few years before falling to $160.8 billion in 2018 primarily due to a fall in product pricing. Trefis estimates Revenue to go up by around 4.5% to $168.1 billion in 2019 primarily on the back of better Daimler Truck segment Sales.
  • Further, Daimler’s financial segment’s revenue has seen a positive growth from $21 billion in 2015 to $29.9 billion in 2018. Trefis estimates a fall in the segment’s revenue to around $26.9 billion in 2019.
How does Volkswagen’s Sales Volume compare with Daimler AG?

  • Volkswagen’s sales volume has seen a steady growth over the last few years. Units sold rose from 10 million in 2015 to 10.9 million in 2018. Trefis estimates Volkswagen to sell around 11.1 million automobiles in 2019.
  • Comparatively, Daimler’s sales volume has seen a fluctuating but positive growth over the past few years. Units sold rose from 2.9 million in 2015 to 3.4 million in 2018. Trefis estimates Daimler to sell around 3.5 million automobiles in 2019.

Comparing Volkswagen’s Net Income Margin with Daimler AG

  • Volkswagen has seen a continuous rise in Net Income margin post the emission scandal in 2015. Net Income margin rose from -0.6% in 2015 to 5% in 2018. Trefis estimates the trend to continue and Volkswagen’s margin to be around 5.7% in 2019.
  • Compared to Volkswagen, Daimler’s Margin has been steadier. In 2018 the margin fell to 4.3% due to higher raw material cost and higher operating expenses. Trefis estimates the metric slightly to be around 4.5% in 2019.

 

Conclusion:

  • Volkswagen is one of the biggest Automobile companies in the world, operating nearly a dozen brands. The brands are spread across the price range which enables Volkswagen to cover a higher target market. Meanwhile, Daimler AG has 2 brands under its portfolio which is for a specific higher price range, and which can be seen in the fact that even though Volkswagen’s sales volume was nearly 3.3x of Daimler’s, its automotive revenue was just 1.4x.

 

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