Kubota vs Wacker Neuson Which Performs Better?

Kubota Corporation and Wacker Neuson are two leading manufacturers in the construction and agricultural equipment industry. Both companies are publicly traded on the stock market, making them attractive investment opportunities for those interested in this sector. Kubota is known for its reliable tractors and other agricultural machinery, while Wacker Neuson specializes in compact construction equipment. Investors often compare the performance of these two stocks to determine which may be a better investment option for their portfolios.

Kubota or Wacker Neuson?

When comparing Kubota and Wacker Neuson, 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 Kubota and Wacker Neuson.

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. Kubota has a dividend yield of 0.01%, while Wacker Neuson has a dividend yield of 8.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kubota reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.70%. On the other hand, Wacker Neuson reports a 5-year dividend growth of 10.76% year and a payout ratio of 68.24%.

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 Kubota P/E ratio at 44.08 and Wacker Neuson's P/E ratio at 8.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kubota P/B ratio is 4.56 while Wacker Neuson's P/B ratio is 0.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kubota has seen a 5-year revenue growth of -0.66%, while Wacker Neuson's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kubota's ROE at 11.32% and Wacker Neuson's ROE at 7.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.48 for Kubota and €13.98 for Wacker Neuson. Over the past year, Kubota's prices ranged from $59.47 to $85.00, with a yearly change of 42.93%. Wacker Neuson's prices fluctuated between €13.18 and €18.76, with a yearly change of 42.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.