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And the winner is:Toyota


Of all the big car companies, Toyota (NYSE:TM) has produced the most sales of any. According to a Fortune report, the Japanese car company has been the choice of most Americans.  However, American companies such as Chrysler, General Motors (NYSE:GM), and Ford (NYSE:F) has also been reporting record profits.

It is expected that Toyota would produce more than 10 million new vehicles this year.

So the all important question to investors. Is it a good buy? There are a few things to look at. First, Toyota has a good reputation, even though there were some recent issues with the vehicles, people still prefer a Toyota over other cars brands. So it has goodwill. American car makers are also developing a reputation for themselves, and with many Americans concerned about “Made in America,” American car maker might have the upper hand. (However, a lot of Toyota cars are assembled in the U.S.)

Next, the stock is trading 26 times its earnings and has a market cap of $405.79 billion making it one of the world’s largest companies. So it is solid. The market is valuing this company very high because of its growth potential. Toyota has a profit margin of 5.41%. The stock prices has been increasing considerably in recent months.