Aisin vs Allison Transmission Which Is More Promising?

Aisin and Allison Transmission are both leading manufacturers of automotive transmission systems, each with their own strengths and advantages in the market. Aisin is known for its high-quality and reliable products, while Allison Transmission is recognized for its advanced technology and innovation. Investors looking to capitalize on the growing demand for transmissions in the industry may consider comparing the stocks of these two companies to determine which may offer better investment opportunities.

Aisin or Allison Transmission?

When comparing Aisin and Allison Transmission, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aisin and Allison Transmission.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aisin has a dividend yield of 3.45%, while Allison Transmission has a dividend yield of 0.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aisin reports a 5-year dividend growth of -7.79% year and a payout ratio of 156.81%. On the other hand, Allison Transmission reports a 5-year dividend growth of 8.92% year and a payout ratio of 11.85%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aisin P/E ratio at 48.08 and Allison Transmission's P/E ratio at 13.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aisin P/B ratio is 0.74 while Allison Transmission's P/B ratio is 6.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aisin has seen a 5-year revenue growth of 2.64%, while Allison Transmission's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aisin's ROE at 1.45% and Allison Transmission's ROE at 51.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1727.50 for Aisin and $115.52 for Allison Transmission. Over the past year, Aisin's prices ranged from ¥1396.00 to ¥2106.00, with a yearly change of 50.86%. Allison Transmission's prices fluctuated between $55.19 and $122.53, with a yearly change of 122.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.