IHI vs Takeuchi Which Outperforms?

IHI Corporation and Takeuchi Manufacturing Co., Ltd. are two prominent companies in the construction equipment industry. IHI specializes in manufacturing and selling a wide range of products including cranes, ships, and industrial machinery, while Takeuchi focuses on producing compact construction machinery such as excavators and loaders. Both companies have shown strong performance in the stock market, with IHI experiencing steady growth and Takeuchi showing resilience in challenging market conditions. Investors looking to diversify their portfolios may consider adding these stocks for potential long-term growth.

IHI or Takeuchi?

When comparing IHI and Takeuchi, 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 IHI and Takeuchi.

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. IHI has a dividend yield of 1.19%, while Takeuchi has a dividend yield of 3.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IHI reports a 5-year dividend growth of 10.76% year and a payout ratio of 13.99%. On the other hand, Takeuchi reports a 5-year dividend growth of 0.00% 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 IHI P/E ratio at 11.71 and Takeuchi's P/E ratio at 7.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IHI P/B ratio is 3.13 while Takeuchi's P/B ratio is 1.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IHI has seen a 5-year revenue growth of -0.09%, while Takeuchi's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IHI's ROE at 28.98% and Takeuchi's ROE at 19.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8342.00 for IHI and ¥4825.00 for Takeuchi. Over the past year, IHI's prices ranged from ¥2480.00 to ¥9479.00, with a yearly change of 282.22%. Takeuchi's prices fluctuated between ¥3560.00 and ¥6700.00, with a yearly change of 88.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.