Alfa vs M3 Which Should You Buy?

Alfa vs M3 stocks refer to two popular stocks in the automotive industry, Alfa Romeo and BMW M3. Alfa Romeo is an Italian luxury car manufacturer known for its sleek designs and powerful engines, while BMW M3 is a high-performance sports sedan known for its precision engineering and driving dynamics. Investors interested in the automotive sector may be considering which stock to invest in, weighing factors such as brand reputation, financial performance, and market trends to make an informed decision.

Alfa or M3?

When comparing Alfa and M3, 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 Alfa and M3.

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. Alfa has a dividend yield of 0.06%, while M3 has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alfa reports a 5-year dividend growth of -9.64% year and a payout ratio of 0.00%. On the other hand, M3 reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.01%.

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 Alfa P/E ratio at -7.24 and M3's P/E ratio at 10.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alfa P/B ratio is 0.55 while M3's P/B ratio is 1.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alfa has seen a 5-year revenue growth of -0.17%, while M3's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alfa's ROE at -20.22% and M3's ROE at 12.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are Mex$15.41 for Alfa and $4.65 for M3. Over the past year, Alfa's prices ranged from Mex$9.94 to Mex$16.61, with a yearly change of 67.10%. M3's prices fluctuated between $3.79 and $8.78, with a yearly change of 131.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.