Mitsubishi vs Hyundai Which Is More Profitable?

Mitsubishi and Hyundai are two major players in the automotive industry, but their stocks tell a different story. While both companies have seen fluctuations in their stock prices over the years, Mitsubishi has faced challenges due to concerns about its financial stability and global market performance. On the other hand, Hyundai has shown more resilience and growth, benefiting from its strong brand reputation and innovative product lineup. Investors looking to capitalize on the automotive sector may find Hyundai stocks more appealing in comparison to Mitsubishi.

Mitsubishi or Hyundai?

When comparing Mitsubishi and Hyundai, 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 Hyundai.

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 3.25%, while Hyundai has a dividend yield of 3.03%. 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, Hyundai reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.26%.

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 11.12 and Hyundai's P/E ratio at 2.28. 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 1.16 while Hyundai's P/B ratio is 0.39.

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 Hyundai's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mitsubishi's ROE at 11.09% and Hyundai's ROE at 19.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.50 for Mitsubishi and ₩19680.00 for Hyundai. Over the past year, Mitsubishi's prices ranged from $14.68 to $24.52, with a yearly change of 67.03%. Hyundai's prices fluctuated between ₩16130.00 and ₩24500.00, with a yearly change of 51.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.