Hyundai vs Mercedes-Benz Which Is Stronger?

Hyundai and Mercedes-Benz are two prominent automobile manufacturers with global recognition. Both companies have seen fluctuations in their stock prices over the years, reflecting the trends in the automotive industry and broader economic conditions. Hyundai, known for its reliable and affordable vehicles, has shown steady growth in recent years. On the other hand, Mercedes-Benz, renowned for luxury and innovation, has maintained a strong position in the market but has also faced challenges. Investors are constantly evaluating the performance of these two companies to make informed decisions about their stock investments.

Hyundai or Mercedes-Benz?

When comparing Hyundai and Mercedes-Benz, 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 Hyundai and Mercedes-Benz.

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. Hyundai has a dividend yield of 3.19%, while Mercedes-Benz has a dividend yield of 10.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hyundai reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.26%. On the other hand, Mercedes-Benz reports a 5-year dividend growth of 5.20% year and a payout ratio of 50.61%.

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 Hyundai P/E ratio at 2.16 and Mercedes-Benz's P/E ratio at 5.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hyundai P/B ratio is 0.36 while Mercedes-Benz's P/B ratio is 0.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hyundai has seen a 5-year revenue growth of 0.47%, while Mercedes-Benz's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hyundai's ROE at 18.01% and Mercedes-Benz's ROE at 11.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩18300.00 for Hyundai and $56.61 for Mercedes-Benz. Over the past year, Hyundai's prices ranged from ₩16130.00 to ₩24500.00, with a yearly change of 51.89%. Mercedes-Benz's prices fluctuated between $53.78 and $83.50, with a yearly change of 55.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.