Mercedes-Benz vs Mitsubishi

Mercedes-Benz and Mitsubishi are two renowned automotive companies with a presence in the global stock market. Mercedes-Benz, a luxury car manufacturer known for its high-quality vehicles, has been a consistent performer in the stock market due to its strong brand reputation. On the other hand, Mitsubishi, a Japanese automaker, has faced challenges in recent years but has been making efforts to revamp its image and improve its financial performance. Investors may consider various factors such as brand strength, financial stability, and market trends when comparing the two stocks.

Mercedes-Benz or Mitsubishi?

When comparing Mercedes-Benz 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 Mercedes-Benz 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. Mercedes-Benz has a dividend yield of 9.16%, while Mitsubishi has a dividend yield of 2.95%. 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 43.05%. 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 Mercedes-Benz P/E ratio at 4.59 and Mitsubishi's P/E ratio at 11.85. 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 Mitsubishi's P/B ratio is 1.24.

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 Mitsubishi's is 2.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercedes-Benz's ROE at 13.82% and Mitsubishi's ROE at 11.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.25 for Mercedes-Benz and $19.50 for Mitsubishi. Over the past year, Mercedes-Benz's prices ranged from $58.43 to $83.50, with a yearly change of 42.91%. 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.