Mazda vs Brembo Which Is More Attractive?

When it comes to investing in automotive stocks, two companies that often come to mind are Mazda and Brembo. Mazda, a renowned Japanese automaker, has a strong global presence and a reputation for producing high-quality vehicles. On the other hand, Brembo, an Italian company, is a leading manufacturer of braking systems known for their performance and reliability. Both companies have loyal customer bases and strong financial performance, making them attractive options for investors looking to capitalize on the automotive industry.

Mazda or Brembo?

When comparing Mazda and Brembo, 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 Mazda and Brembo.

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. Mazda has a dividend yield of 1.14%, while Brembo has a dividend yield of 3.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mazda reports a 5-year dividend growth of 11.57% year and a payout ratio of 0.00%. On the other hand, Brembo reports a 5-year dividend growth of -22.46% year and a payout ratio of 32.77%.

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 Mazda P/E ratio at 20.98 and Brembo's P/E ratio at 10.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mazda P/B ratio is 2.64 while Brembo'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, Mazda has seen a 5-year revenue growth of 0.76%, while Brembo's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 13.16% and Brembo's ROE at 13.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1372.60 for Mazda and €9.29 for Brembo. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Brembo's prices fluctuated between €9.02 and €12.39, with a yearly change of 37.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.