Mercedes-Benz vs Toyota Motor Which Is More Profitable?

Both Mercedes-Benz and Toyota Motor are prominent players in the automotive industry, known for their commitment to luxury, innovation, and reliability. While Mercedes-Benz is synonymous with prestige and cutting-edge technology, Toyota has built a reputation for efficiency and practicality. Both companies have loyal customer bases and strong global presence, making their stocks a popular choice for investors looking to capitalize on the continued growth of the automotive market. Let's delve deeper into the comparison between Mercedes-Benz and Toyota Motor stocks.

Mercedes-Benz or Toyota Motor?

When comparing Mercedes-Benz and Toyota Motor, 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 Toyota Motor.

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 9.24%, while Toyota Motor has a dividend yield of 2.75%. 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, Toyota Motor reports a 5-year dividend growth of 2.65% year and a payout ratio of 23.74%.

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 5.42 and Toyota Motor's P/E ratio at 8.54. 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 Toyota Motor's P/B ratio is 1.06.

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 Toyota Motor's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercedes-Benz's ROE at 11.79% and Toyota Motor's ROE at 12.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.50 for Mercedes-Benz and $176.82 for Toyota Motor. Over the past year, Mercedes-Benz's prices ranged from $53.78 to $83.50, with a yearly change of 55.26%. Toyota Motor's prices fluctuated between $159.04 and $255.23, with a yearly change of 60.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.