Honda Motor vs Mitsubishi Which Is More Lucrative?

Honda Motor and Mitsubishi are two major players in the automotive industry, each with their own strengths and weaknesses in the stock market. Honda is a well-established brand known for its reliable vehicles and innovative technology, making it a popular choice for investors. On the other hand, Mitsubishi has faced challenges in recent years, struggling with financial issues and a decline in market share. Both companies have the potential for growth and profitability, but investors should carefully consider the factors influencing their stock performance.

Honda Motor or Mitsubishi?

When comparing Honda Motor and Mitsubishi, 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 Honda Motor and Mitsubishi.

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. Honda Motor has a dividend yield of 4.04%, while Mitsubishi has a dividend yield of 3.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 29.01%. On the other hand, Mitsubishi reports a 5-year dividend growth of 7.47% year and a payout ratio of 28.95%.

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 Honda Motor P/E ratio at 5.86 and Mitsubishi's P/E ratio at 11.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Honda Motor P/B ratio is 0.50 while Mitsubishi's P/B ratio is 1.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Honda Motor has seen a 5-year revenue growth of 0.16%, while Mitsubishi's is 2.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Honda Motor's ROE at 9.01% and Mitsubishi's ROE at 11.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.89 for Honda Motor and $17.50 for Mitsubishi. Over the past year, Honda Motor's prices ranged from $26.70 to $37.90, with a yearly change of 41.95%. Mitsubishi's prices fluctuated between $14.68 and $24.52, with a yearly change of 67.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.