Mercedes-Benz vs Mazda Which Is a Smarter Choice?

Mercedes-Benz and Mazda are two well-known automakers in the industry, with both companies having a strong presence in the global market. Mercedes-Benz, a luxury car brand, is known for its high-quality vehicles and innovative technology, making it a popular choice among consumers. On the other hand, Mazda, a more affordable option, offers reliable and stylish vehicles that appeal to a wider audience. Investors may be interested in comparing the stocks of these two companies to determine which is a better investment option for their portfolio.

Mercedes-Benz or Mazda?

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

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. Mercedes-Benz has a dividend yield of 9.19%, while Mazda has a dividend yield of 1.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mercedes-Benz reports a 5-year dividend growth of 5.20% year and a payout ratio of 50.61%. On the other hand, Mazda reports a 5-year dividend growth of 11.57% year and a payout ratio of 0.00%.

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 Mercedes-Benz P/E ratio at 5.38 and Mazda's P/E ratio at 19.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mercedes-Benz P/B ratio is 0.65 while Mazda's P/B ratio is 2.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mercedes-Benz has seen a 5-year revenue growth of -0.08%, while Mazda's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercedes-Benz's ROE at 11.79% and Mazda's ROE at 14.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.86 for Mercedes-Benz and ₹1426.95 for Mazda. Over the past year, Mercedes-Benz's prices ranged from $53.78 to $83.50, with a yearly change of 55.26%. Mazda's prices fluctuated between ₹1103.55 and ₹1660.95, with a yearly change of 50.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.