Nissan Motor Co., Ltd. (ADR) (NSANY)’s Price Justifies a Buy

The competition: General Motors Company (NYSE:GM)

General Motors Company (NYSE:GM), manufacturer of the Chevrolet Volt, cut prices on the 2012 versions of the vehicle by $6,000 on June 16. This has been a common theme in the industry and could indicate more efficient manufacturing and cheaper parts. That’s good news for the industry as a whole and matches the $6,000 Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) cut to its Leaf, though that could be a sign of the American dollar’s recent increased value in comparison to the Japanese yen (as Nissan is Japanese.)

General Motors Company (NYSE:GM) is attractively valued at first glance due to its upswing potential, though deciding which of the three firms is most attractively priced is matter of which company you think will profit most from electric vehicle sales. The return on equity is low at under 3% and could indicate a problem controlling costs.

All three could be winners

Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) is my top pick for its current share price. All three companies could see substantial increases in revenue from their electric vehicle operations, but Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) looks most attractively priced right now when factoring the upswing potential. Furthermore, Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) currently has a more attractive EV selling price and could compete with General Motors Company (NYSE:GM) to be the first to hit the mainstream, while Tesla currently only caters to the much smaller luxury market However, if Tesla continues to sell big, revenue there could justify the firm’s staggering share price.

In the end, this story has just begun. It will take close inspection of news releases over the coming months and years to really know which company will come out on top. But Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY)’s share price justifies a buy.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends General Motors and Tesla Motors (NASDAQ:TSLA) . The Motley Fool owns shares of Tesla Motors . Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Nissan’s Price Justifies a Buy originally appeared on Fool.com is written by Phillip Woolgar.

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