Ashok Leyland vs Eicher Motors Which Is More Reliable?

Ashok Leyland and Eicher Motors are two prominent players in the Indian commercial vehicle manufacturing industry. Both companies have a strong market presence and a history of delivering quality products. Investors often compare the two stocks to determine which one offers better investment opportunities. While Ashok Leyland is known for its strong product range and market share, Eicher Motors has a reputation for its excellent financial performance. This comparison helps investors make informed decisions about where to invest their money in the sector.

Ashok Leyland or Eicher Motors?

When comparing Ashok Leyland and Eicher Motors, 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 Ashok Leyland and Eicher Motors.

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. Ashok Leyland has a dividend yield of 3.04%, while Eicher Motors has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ashok Leyland reports a 5-year dividend growth of 1.36% year and a payout ratio of 0.00%. On the other hand, Eicher Motors reports a 5-year dividend growth of -19.58% year and a payout ratio of 0.00%.

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 Ashok Leyland P/E ratio at 25.61 and Eicher Motors's P/E ratio at 30.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ashok Leyland P/B ratio is 6.53 while Eicher Motors's P/B ratio is 6.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ashok Leyland has seen a 5-year revenue growth of 0.39%, while Eicher Motors's is 0.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ashok Leyland's ROE at 24.83% and Eicher Motors's ROE at 24.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹227.50 for Ashok Leyland and ₹4797.50 for Eicher Motors. Over the past year, Ashok Leyland's prices ranged from ₹157.55 to ₹264.65, with a yearly change of 67.98%. Eicher Motors's prices fluctuated between ₹3562.45 and ₹5105.00, with a yearly change of 43.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.