HD Hyundai vs Hyundai Which Performs Better?

Hyundai is a popular South Korean automobile manufacturer known for its reliable and affordable vehicles. However, the company also has a presence in the stock market, with both Hyundai Motor Company and Hyundai Mobis Company offering investors the opportunity to own a piece of the company. In this comparison, we will analyze the differences between investing in Hyundai stocks directly versus investing in Hyundai through an exchange-traded fund (ETF) like the HD Hyundai Index Fund. The stocks of Hyundai and HD Hyundai offer investors a chance to participate in the success and growth of this global brand, but each option has its own advantages and risks to consider. Let's delve deeper into the comparison of HD Hyundai vs. Hyundai stocks to determine which investment option may be the best fit for your financial goals.

HD Hyundai or Hyundai?

When comparing HD Hyundai and Hyundai, 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 HD Hyundai and Hyundai.

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. HD Hyundai has a dividend yield of 5.86%, while Hyundai has a dividend yield of 3.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HD Hyundai reports a 5-year dividend growth of -27.52% year and a payout ratio of 33.67%. On the other hand, Hyundai reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.26%.

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 HD Hyundai P/E ratio at 5.75 and Hyundai's P/E ratio at 2.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HD Hyundai P/B ratio is 0.65 while Hyundai's P/B ratio is 0.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HD Hyundai has seen a 5-year revenue growth of 1.33%, while Hyundai's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HD Hyundai's ROE at 12.14% and Hyundai's ROE at 18.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩77300.00 for HD Hyundai and ₩19440.00 for Hyundai. Over the past year, HD Hyundai's prices ranged from ₩59400.00 to ₩85000.00, with a yearly change of 43.10%. Hyundai's prices fluctuated between ₩16130.00 and ₩24500.00, with a yearly change of 51.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.