Mitsubishi vs Mitsubishi Heavy Industries Which Is Superior?

Mitsubishi and Mitsubishi Heavy Industries are two separate entities within the Mitsubishi Group conglomerate. Both companies operate in different sectors, with Mitsubishi focusing on automotive and Mitsubishi Heavy Industries specializing in heavy machinery, aerospace, and defense. Investors interested in these stocks should consider their respective market dynamics, financial performance, and growth prospects. By comparing Mitsubishi and Mitsubishi Heavy Industries stocks, investors can make informed decisions based on their investment goals and risk tolerance.

Mitsubishi or Mitsubishi Heavy Industries?

When comparing Mitsubishi and Mitsubishi Heavy Industries, 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 Mitsubishi Heavy Industries.

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 3.43%, while Mitsubishi Heavy Industries has a dividend yield of 0.82%. 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, Mitsubishi Heavy Industries reports a 5-year dividend growth of -2.93% year and a payout ratio of 28.86%.

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 10.45 and Mitsubishi Heavy Industries's P/E ratio at 34.91. 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 1.09 while Mitsubishi Heavy Industries's P/B ratio is 3.46.

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 Mitsubishi Heavy Industries's is -0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mitsubishi's ROE at 11.09% and Mitsubishi Heavy Industries's ROE at 10.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.78 for Mitsubishi and $15.70 for Mitsubishi Heavy Industries. Over the past year, Mitsubishi's prices ranged from $14.68 to $24.52, with a yearly change of 67.03%. Mitsubishi Heavy Industries's prices fluctuated between $5.32 and $16.09, with a yearly change of 202.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.