CAR vs Driver Which Is a Smarter Choice?

CAR vs driver stocks refers to the ongoing debate within the automotive industry regarding the future of transportation. While traditional automakers focus on designing and producing vehicles, newer companies are shifting their focus towards developing autonomous driving technology. This has created a divide in the stock market, with some investors favoring companies that prioritize the development of self-driving cars, while others believe that the human-driven car market will continue to thrive. The outcome of this debate will have a significant impact on the future of the industry and investing in these stocks requires a careful consideration of both sides.

CAR or Driver?

When comparing CAR and Driver, 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 CAR and Driver.

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. CAR has a dividend yield of 2.06%, while Driver has a dividend yield of 5.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAR reports a 5-year dividend growth of 10.01% year and a payout ratio of 98.63%. On the other hand, Driver reports a 5-year dividend growth of 8.45% 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 CAR P/E ratio at 53.41 and Driver's P/E ratio at nan. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAR P/B ratio is 4.63 while Driver's P/B ratio is nan.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAR has seen a 5-year revenue growth of 0.79%, while Driver's is -0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAR's ROE at 8.54% and Driver's ROE at 0.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$35.09 for CAR and £25.31 for Driver. Over the past year, CAR's prices ranged from A$32.25 to A$42.70, with a yearly change of 32.42%. Driver's prices fluctuated between £20.50 and £32.70, with a yearly change of 59.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.