Hyundai vs Suzuki

Hyundai and Suzuki are two global automobile manufacturers that have generated significant interest in the stock market. Investors often compare the performance of Hyundai and Suzuki stocks to determine which company offers better returns and growth potential. Hyundai, a South Korean company, has a strong presence in the automotive industry, while Suzuki, a Japanese company, is known for its innovation and efficiency. Understanding the strengths and weaknesses of both companies can help investors make informed decisions when investing in their stocks.

Hyundai or Suzuki?

When comparing Hyundai and Suzuki, 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 Suzuki.

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 Suzuki has a dividend yield of 2.5%. 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, Suzuki reports a 5-year dividend growth of 20.11% 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 Hyundai P/E ratio at 2.33 and Suzuki's P/E ratio at 10.78. 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 Suzuki's P/B ratio is 1.05.

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 Suzuki's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hyundai's ROE at 16.56% and Suzuki's ROE at 9.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩18760.00 for Hyundai and ¥1782.00 for Suzuki. Over the past year, Hyundai's prices ranged from ₩16130.00 to ₩24500.00, with a yearly change of 51.89%. Suzuki's prices fluctuated between ¥1077.00 and ¥1865.00, with a yearly change of 73.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.