Mazda vs Renault Which Is More Profitable?

Mazda and Renault are two prominent automotive companies with global presence and strong brand recognition. Both companies have experienced fluctuations in their stock prices over the years, impacted by various factors such as market trends, competition, and economic conditions. Investors may compare the performance of Mazda and Renault stocks in terms of financial health, market share, innovation, and growth potential to make informed investment decisions. It is essential to conduct thorough research and analysis to understand the dynamics of the automotive industry and the opportunities presented by Mazda and Renault stocks.

Mazda or Renault?

When comparing Mazda and Renault, 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 Renault.

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 1.16%, while Renault has a dividend yield of 4.46%. 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, Renault reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.16%.

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 18.74 and Renault's P/E ratio at 1.69. 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 2.54 while Renault's P/B ratio is 0.08.

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 Renault's is 3.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mazda's ROE at 14.12% and Renault's ROE at 4.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1356.55 for Mazda and $9.23 for Renault. Over the past year, Mazda's prices ranged from ₹1103.55 to ₹1660.95, with a yearly change of 50.51%. Renault's prices fluctuated between $7.25 and $11.72, with a yearly change of 61.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.