DEUTZ vs Kubota Which Is More Attractive?

Deutz and Kubota are two prominent companies in the industrial machinery sector, with a focus on manufacturing engines for a variety of applications. Investors looking to capitalize on the growth potential of this industry may consider investing in stocks of either Deutz or Kubota. Both companies have a strong track record of innovation and success in their respective markets, making them attractive options for those seeking exposure to the industrial machinery sector. However, each company has its own unique strengths and weaknesses, which should be carefully considered before making an investment decision.

DEUTZ or Kubota?

When comparing DEUTZ and Kubota, 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 DEUTZ and Kubota.

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. DEUTZ has a dividend yield of 4.15%, while Kubota has a dividend yield of 0.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DEUTZ reports a 5-year dividend growth of 16.47% year and a payout ratio of 42.97%. On the other hand, Kubota reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.70%.

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 DEUTZ P/E ratio at 10.57 and Kubota's P/E ratio at 41.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DEUTZ P/B ratio is 0.64 while Kubota's P/B ratio is 4.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DEUTZ has seen a 5-year revenue growth of 0.12%, while Kubota's is -0.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DEUTZ's ROE at 6.47% and Kubota's ROE at 11.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €4.05 for DEUTZ and $61.44 for Kubota. Over the past year, DEUTZ's prices ranged from €3.64 to €6.41, with a yearly change of 76.10%. Kubota's prices fluctuated between $59.39 and $85.00, with a yearly change of 43.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.