Mitsubishi vs Mazda Which Is More Attractive?

Mitsubishi and Mazda are two iconic Japanese automobile manufacturers that have been competing in the global market for decades. Both companies have seen fluctuations in their stock prices due to various factors such as economic conditions, new product launches, and changes in consumer preferences. Investors often compare the performance of Mitsubishi and Mazda stocks to determine which company is a more promising investment. In this analysis, we will examine the historical performance and potential future outlook of Mitsubishi and Mazda stocks to provide insights for prospective investors.

Mitsubishi or Mazda?

When comparing Mitsubishi and Mazda, 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 Mazda.

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 Mazda has a dividend yield of 1.14%. 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, Mazda reports a 5-year dividend growth of 11.57% year and a payout ratio of 0.00%.

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 Mazda's P/E ratio at 20.98. 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 Mazda's P/B ratio is 2.64.

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 Mazda's is 0.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mitsubishi's ROE at 11.09% and Mazda's ROE at 13.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.50 for Mitsubishi and ₹1372.60 for Mazda. Over the past year, Mitsubishi's prices ranged from $14.68 to $24.52, with a yearly change of 67.03%. Mazda's prices fluctuated between ₹1103.55 and ₹1660.95, with a yearly change of 50.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.