Mazda vs Mitsubishi Which Is More Promising?

Mazda and Mitsubishi are two well-known Japanese automotive manufacturers that have been competing in the global market for decades. Both companies have a loyal customer base and a strong reputation for producing high-quality vehicles. When comparing their stocks, investors often analyze factors such as financial performance, market share, innovation, and future growth potential. With Mazda focusing on sporty and innovative designs, while Mitsubishi offers a wide range of vehicles including electric and hybrid models, both companies provide unique opportunities for investors looking to diversify their portfolios in the automotive industry.

Mazda or Mitsubishi?

When comparing Mazda and Mitsubishi, 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 Mitsubishi.

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 Mitsubishi has a dividend yield of 3.34%. 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, Mitsubishi reports a 5-year dividend growth of 7.47% year and a payout ratio of 28.95%.

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 Mitsubishi's P/E ratio at 10.54. 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 Mitsubishi's P/B ratio is 1.10.

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 Mitsubishi's is 2.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 14.12% and Mitsubishi's ROE at 11.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1329.95 for Mazda and $17.07 for Mitsubishi. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Mitsubishi's prices fluctuated between $14.68 and $24.52, with a yearly change of 67.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.