Mitsubishi vs Honda Motor

Mitsubishi and Honda are both major players in the automotive industry, with widely recognized brands and a global presence. When it comes to their stock performance, investors often compare the two companies to determine which may be a more lucrative investment opportunity. Mitsubishi Motors Corporation has faced challenges in recent years, while Honda Motor Co., Ltd. has seen more consistent growth and profitability. Understanding the differences between these two companies can help investors make informed decisions about their stock portfolios.

Mitsubishi or Honda Motor?

When comparing Mitsubishi and Honda 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 Honda 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 2.95%, while Honda Motor has a dividend yield of 1.89%. 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, Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 29.01%.

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 11.85 and Honda Motor's P/E ratio at 19.37. 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 1.24 while Honda Motor's P/B ratio is 1.65.

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 Honda Motor's is -0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mitsubishi's ROE at 11.09% and Honda Motor's ROE at 9.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.50 for Mitsubishi and $30.67 for Honda Motor. Over the past year, Mitsubishi's prices ranged from $14.68 to $24.52, with a yearly change of 67.03%. Honda Motor's prices fluctuated between $27.69 and $37.90, with a yearly change of 36.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.