Mazda vs Ferrari Which Performs Better?

When it comes to comparing Mazda and Ferrari stocks, investors face a choice between two companies with vastly different histories and business models. Mazda, a Japanese automaker known for its affordable and reliable vehicles, appeals to value investors looking for long-term stability. Ferrari, on the other hand, is a luxury brand synonymous with performance and exclusivity, making it an attractive option for growth investors seeking high returns. Both companies have their strengths and weaknesses, making a thorough analysis essential for informed decision-making.

Mazda or Ferrari?

When comparing Mazda and Ferrari, 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 Ferrari.

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 Ferrari has a dividend yield of 0.58%. 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, Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 31.34%.

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 Ferrari's P/E ratio at 55.09. 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 Ferrari's P/B ratio is 24.64.

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 Ferrari's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 13.16% and Ferrari's ROE at 45.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1372.60 for Mazda and $451.82 for Ferrari. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Ferrari's prices fluctuated between $330.15 and $498.23, with a yearly change of 50.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.