The shares with the “VOW symbol are ordinary shares, which allow you to vote if you own them. In contrast, the shares with the “VOW3 symbol are preferred shares, which do not allow you to vote.
In This Article...
What distinguishes Volkswagen ordinary shares from preference shares?
In the past, VW’s Preference Shares (OTCMKTS: VWAPY) have had substantially more trading activity than their Common Shares, making them more liquid. These do not have voting privileges, but they are given preference in the event of any corporate matters, such as the payment of dividends to shareholders.
VWAGY vs Vwapy, which is preferable?
In the United States, automobiles are still likely the most common mode of passenger transportation. Major automakers have revenues and market capitalizations that top the billion dollar mark. The sector has recently seen some ground-breaking advancements including self-driving cars and electrified vehicles. While there are established competitors in this industry like General Motors, Ford, and Toyota Motors, there are also new or rapidly expanding players like Tesla, which has significantly contributed to the rising popularity of the electric vehicle market. We’ve seen collaborations between automakers and tech behemoths like Google’s subsidiary, Waymo, as well as discussions of potential alliances as technical breakthroughs in the automotive industry gain traction.
VWAGY and VWAPY both have market capitalizations of $84.8 billion. VWAGY has a higher P/E ratio than VWAPY (5.35 vs. 4.18), while VWAPY’s YTD gains are higher at -25.086 vs. VWAGY (-34.989). VWAGY and VWAPY both have similar annual earnings (EBITDA), while VWAGY and VWAPY both have an equal amount of cash on hand (57.7 billion and $5
Short-Term Analysis
It is best to use Technical Analysis (TA) indicators when analyzing a ticker’s short-term prognosis. The odds of success are calculated as the proportion of results that confirm previous profitable trade signals.
The created signal is confirmed if the Odds of Success (the probability of a trend continuing) for each indicator are higher than 50%. A bullish trend is indicated by a green percentage on the ticker that ranges from 90% to 51%. The ticker is in a bearish trend if the percentage is red and ranges from 90% to 51%. The trend signal is not considered to be confirmed by any grey percentages because they are all below 50%.
TA Score for VLKAF: 6 bullish, 4 bearish.
Industries’ Descriptions
VLKAF and VLKPF both have market capitalizations of $86.8 billion. VLKAF has a higher P/E ratio than VLKPF (5.50 vs. 4.21), while VLKPF’s YTD gains are higher at -28.489 vs. VLKAF (-35.768). VLKAF and VLKPF both have similar annual earnings (EBITDA) of $50.6 billion. VLKAF and VLKPF both have the same amount of cash in
What distinguishes Volkswagen VWAGY from Vwapy?
The liquidity of the two classes of shares, however, is the main distinction and the cause of the current price disparity. The preference shares and VWAPY ADRs are significantly more liquid. On the other side, the free float for VWAGY shares is extremely low.
Which is preferable, ordinary stock or an ADR?
You should first calculate the commission your broker is likely to charge you for each trade in order to decide whether it would be better for you to purchase the foreign stock (F ticker) or the ADR (Y ticker). The majority of the time, I simply enter the trade into my broker’s online platform to view the anticipated commission and then click “Cancel” rather than confirming the trade. Purchase the foreign stock if the commission rates for it and the ADR are same.
If the foreign stock purchase commission is higher, you should think about how much you want to buy and how long you want to hold the stock.
The ADR is typically more cost-effective for small investors and those who do not plan to retain the shares for an extended period of time. Generally speaking, larger investors and long-term holders should purchase the foreign stock.
A critical analysis of Volkswagen stock:
With the following indicators, fundamental analysis of the Volkswagen share provides intriguing medium- and long-term signals:
- Low valuation: It is estimated that Volkswagen’s enterprise value is 0.15 times sales. Therefore, based on its net book value and cash flow, the stock appears to be undervalued.
- Divergent consensus: It is difficult to value this stock because of the wide disparity between analyst price targets for it.
- Weak growth predictions: Based on how sales are predicted to evolve, weak growth is predicted during the next few years.
- Launches that surpass expectations: According to past trends, the Volkswagen Group has a favorable surprise rate for its releases.
- High price target: The average analyst price target for this company is quite different from the present price, indicating an intriguing upside potential.
- Volkswagen pays out a respectable dividend, making it a desirable yield investment for investors.
- Strong financial position: The company exhibits a strong financial position with intriguing earnings multiples thanks to a high level of cash and net margin.
A technical analysis of Volkswagen stock:
Long-term signs from Volkswagen’s chart and technical analysis data are more bearish and include the following:
- The RSI is currently showing a strong sell signal at 43.231.
- With the exception of the MA200 simple and exponential average, which is sending a purchase signal, all simple and exponential moving averages are sending sell signals.
- While the long-term stochastic is generating an oversold signal, the short, medium, and long-term stochastics are sending sell signals.
- The following technical support and resistance levels are at 132.64 and 108.28, respectively. The next technical support levels are at 180.02 and 203.04.
- The MACD is presently at 0.15 and is indicating a weak buy.
Does VWAGY offer dividends?
A $0.55 dividend per share is given by VWAGY. The yearly dividend yield for VWAGY is 2.76%.
The last ex-dividend date for Volkswagen AG was May 13, 2022. Shareholders of Volkswagen AG who held VWAGY shares before to this date were paid $0.55 per share as the company’s final dividend on June 1, 2022. The next ex-dividend date for Apple has not yet been disclosed.
Those Volkswagen AG shareholders who had VWAGY shares before to May 13, 2022 received a dividend payment of $0.55 per share on June 1, 2022, the company’s following quarterly payment date. If you want to be alerted when VWAGY pays its next dividend, add the stock to your watchlist.
Yes, VWAGY’s earnings per share for the most recent fiscal year were $3.82, and their dividend payout per share is $0.93. The sustainable dividend payout ratio for VWAGY is 15.12% ($0.93/$3.82).
Vwapy: Is it a wise investment?
The consensus price objective for Volkswagen AG among the 16 analysts who are providing 12-month price projections is 23.21, with a high estimate of 32.09 and a low estimate of 11.52. From the most recent price of 14.26, the median projection reflects a rise of +62.79%.
Analyst Recommendations
Two investing analysts were surveyed, and their current consensus is to buy Volkswagen AG stock. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Is VWAGY a wise investment?
VWAGY’s financial stability and expansion prospects show that it has the potential to outperform the market. Its growth score right now is C. With a Momentum Score of D, recent price fluctuations and earnings estimate revisions suggest this would not be an excellent company for momentum investors.
The stock of Volkswagen is declining; why?
Recent Earnings (Q4 2021) During their most recent earnings call, Volkswagen informed investors that the global semiconductor scarcity and the Covid pandemic had caused a 6.2% fall in vehicle sales for the Automotive company.
How can I purchase VW shares in the US?
- Select a web broker. One of the most crucial elements to successful trading is this one.
- Establish a trading account. Open your account once you’ve chosen your broker.
- Put the trading platform in place.
- Performing your analysis
- Buy Volkswagen shares.
Is Volkswagen stock one to buy?
- Tesla, Inc. (NASDAQ:TSLA) is rated as a hold by me despite its recent excellent rise. This is due to the company’s low Expected Return based on my DCF Model, present valuation, and high risk factors.
- The same Scorecard awards Tesla 57 points out of a possible 100. In terms of risk and reward, this scoring is relatively attractive. Tesla receives extremely favorable scores in the categories of growth (100/100), innovation (100/100), and profitability (90/100), but it receives unfavorable ratings in the categories of expected return and valuation.
- The HQC Scorecard gives Volkswagen a score of 68 out of 100, which is a favorable grade for the German automaker in terms of risk and reward. The company does exceptionally well in the valuation, expected return, and economic moat categories.
- Volkswagen AG (OTCPK:VLKAF) (OTCPK:VWAGY) is a buy in my opinion since it is significantly investing in the e-mobility market and has a very reasonable price. With a 25% market share in 2021, the firm was already the industry leader for electric vehicles in Europe.