Hyundai vs Mitsubishi

Hyundai and Mitsubishi are both well-known players in the automotive industry, but their performance in the stock market tells a different story. Hyundai Motor Company has seen consistent growth in its stock price over the years, buoyed by strong sales and innovative product offerings. On the other hand, Mitsubishi Motors Corporation has struggled with financial challenges and recalls, leading to a more volatile stock performance. Investors looking to capitalize on the automotive sector should carefully consider the strengths and weaknesses of each company before making investment decisions.

Hyundai or Mitsubishi?

When comparing Hyundai 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 Hyundai 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. Hyundai has a dividend yield of 3.19%, while Mitsubishi has a dividend yield of 2.95%. 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 7.38%. 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 Hyundai P/E ratio at 2.33 and Mitsubishi's P/E ratio at 11.85. 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 0.34 while Mitsubishi's P/B ratio is 1.24.

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 Mitsubishi's is 2.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hyundai's ROE at 16.56% and Mitsubishi's ROE at 11.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩18760.00 for Hyundai and $19.50 for Mitsubishi. Over the past year, Hyundai's prices ranged from ₩16130.00 to ₩24500.00, with a yearly change of 51.89%. 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.