Mazda vs Porsche Which Is More Profitable?

Both Mazda and Porsche are renowned automotive companies with loyal fan bases and strong market presence. Mazda, a Japanese manufacturer, focuses on producing affordable and reliable vehicles, while Porsche, a German luxury carmaker, is synonymous with high-performance and prestige. Investors often compare the two companies' stocks due to their differing business models and target markets. Understanding the financial performance and growth prospects of Mazda and Porsche can provide valuable insights for potential investors looking to capitalize on the automotive industry.

Mazda or Porsche?

When comparing Mazda and Porsche, 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 Porsche.

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 Porsche has a dividend yield of 7.24%. 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, Porsche reports a 5-year dividend growth of 0.00% year and a payout ratio of 152.73%.

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 Porsche's P/E ratio at 14.57. 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 Porsche's P/B ratio is 2.60.

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 Porsche's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 13.16% and Porsche's ROE at 18.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1372.60 for Mazda and €63.82 for Porsche. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Porsche's prices fluctuated between €61.10 and €96.18, with a yearly change of 57.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.