Mitsubishi vs Ford Motor Which Is More Promising?

Mitsubishi and Ford Motor are two of the most renowned automotive companies in the world, competing in the global stock market to gain investors' attention. Mitsubishi, a Japanese multinational corporation, offers a diverse range of vehicles, while Ford Motor, an American automaker, is known for its iconic brands and innovative technologies. Both companies have their unique strengths and weaknesses, with fluctuating stock prices influenced by factors such as market trends, economic conditions, and consumer demand. Investors must carefully analyze these factors before deciding on investing in Mitsubishi or Ford Motor stocks.

Mitsubishi or Ford Motor?

When comparing Mitsubishi and Ford 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 Mitsubishi and Ford 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. Mitsubishi has a dividend yield of 3.39%, while Ford Motor has a dividend yield of 7.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mitsubishi reports a 5-year dividend growth of 7.47% year and a payout ratio of 28.95%. On the other hand, Ford Motor reports a 5-year dividend growth of 11.36% year and a payout ratio of 88.50%.

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 Mitsubishi P/E ratio at 10.52 and Ford Motor's P/E ratio at 11.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mitsubishi P/B ratio is 1.10 while Ford Motor's P/B ratio is 0.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mitsubishi has seen a 5-year revenue growth of 2.10%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mitsubishi's ROE at 11.09% and Ford Motor's ROE at 8.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.01 for Mitsubishi and $10.55 for Ford Motor. Over the past year, Mitsubishi's prices ranged from $14.68 to $24.52, with a yearly change of 67.03%. Ford Motor's prices fluctuated between $9.49 and $14.85, with a yearly change of 56.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.