Brembo vs Mazda Which Is More Promising?

Brembo and Mazda are two well-known companies in the automotive industry. Brembo is a leading manufacturer of high-performance brake systems, while Mazda is a popular car manufacturer known for its innovative technologies and stylish designs. Both companies have loyal customer bases and strong financial performance. Investors interested in the automotive sector may be interested in comparing Brembo and Mazda stocks to determine which may offer the best investment opportunity.

Brembo or Mazda?

When comparing Brembo and Mazda, 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 Brembo and Mazda.

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. Brembo has a dividend yield of 3.27%, while Mazda has a dividend yield of 1.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brembo reports a 5-year dividend growth of -22.46% year and a payout ratio of 35.26%. On the other hand, Mazda reports a 5-year dividend growth of 11.57% 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 Brembo P/E ratio at 10.51 and Mazda's P/E ratio at 18.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brembo P/B ratio is 1.31 while Mazda's P/B ratio is 2.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brembo has seen a 5-year revenue growth of 0.47%, while Mazda's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brembo's ROE at 12.58% and Mazda's ROE at 14.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €9.07 for Brembo and ₹1356.55 for Mazda. Over the past year, Brembo's prices ranged from €8.52 to €12.39, with a yearly change of 45.44%. Mazda's prices fluctuated between ₹1103.55 and ₹1660.95, with a yearly change of 50.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.