Ferrari vs Mazda Which Is More Profitable?

Ferrari and Mazda are two renowned automotive companies with distinct market positions and business models. Ferrari, synonymous with luxury and high-performance sports cars, has a loyal customer base and strong brand recognition. On the other hand, Mazda is known for producing more mainstream, affordable vehicles with a focus on safety and efficiency. Both companies have their own strengths and weaknesses, making them interesting choices for investors looking to enter the automotive sector. Let's delve deeper into the performance of Ferrari and Mazda stocks to understand which one presents a more promising investment opportunity.

Ferrari or Mazda?

When comparing Ferrari 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 Ferrari 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. Ferrari has a dividend yield of 0.52%, while Mazda has a dividend yield of 1.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ferrari reports a 5-year dividend growth of 20.36% year and a payout ratio of 1.73%. On the other hand, Mazda reports a 5-year dividend growth of 12.20% 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 Ferrari P/E ratio at 50.40 and Mazda's P/E ratio at 15.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ferrari P/B ratio is 22.90 while Mazda's P/B ratio is 2.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ferrari has seen a 5-year revenue growth of 0.84%, while Mazda's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ferrari's ROE at 46.63% and Mazda's ROE at 13.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $452.94 for Ferrari and ₹218.00 for Mazda. Over the past year, Ferrari's prices ranged from $399.27 to $509.13, with a yearly change of 27.52%. Mazda's prices fluctuated between ₹206.05 and ₹428.88, with a yearly change of 108.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.