Mazda vs Mercedes-Benz Which Offers More Value?

When comparing Mazda and Mercedes-Benz stocks, it is important to consider the unique factors that drive the performance of each company. While both are well-established automotive manufacturers, Mazda is known for its focus on affordable, reliable vehicles, while Mercedes-Benz is synonymous with luxury and innovation. Investors must weigh factors such as market trends, financial performance, and brand positioning to determine which stock may offer the best potential for growth and stability in their investment portfolio.

Mazda or Mercedes-Benz?

When comparing Mazda and Mercedes-Benz, 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 Mercedes-Benz.

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 1.19%, while Mercedes-Benz has a dividend yield of 10.07%. 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, Mercedes-Benz reports a 5-year dividend growth of 5.20% year and a payout ratio of 50.61%.

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 18.24 and Mercedes-Benz's P/E ratio at 5.16. 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 2.48 while Mercedes-Benz's P/B ratio is 0.62.

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 0.74%, while Mercedes-Benz's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 14.12% and Mercedes-Benz's ROE at 11.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1329.95 for Mazda and $56.61 for Mercedes-Benz. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Mercedes-Benz's prices fluctuated between $53.78 and $83.50, with a yearly change of 55.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.