Peugeot Invest vs Ferrari

Investing in stocks is a common way for individuals to grow their wealth over time. Two popular automotive companies that often attract the attention of investors are Peugeot and Ferrari. Peugeot, a French car manufacturer with a long history in the industry, offers stable returns and growth potential for investors looking for a reliable investment. On the other hand, Ferrari, an Italian luxury sports car brand, has a strong brand image and a loyal customer base, making it an attractive option for investors seeking higher returns and potential for growth.

Peugeot Invest or Ferrari?

When comparing Peugeot Invest and Ferrari, 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 Peugeot Invest and Ferrari.

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. Peugeot Invest has a dividend yield of 4.38%, while Ferrari has a dividend yield of 0.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Peugeot Invest reports a 5-year dividend growth of 7.34% year and a payout ratio of 71.78%. On the other hand, Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 31.34%.

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 Peugeot Invest P/E ratio at 16.39 and Ferrari's P/E ratio at 56.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Peugeot Invest P/B ratio is 0.33 while Ferrari's P/B ratio is 25.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Peugeot Invest has seen a 5-year revenue growth of 1.50%, while Ferrari's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Peugeot Invest's ROE at 1.96% and Ferrari's ROE at 45.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €73.40 for Peugeot Invest and $469.58 for Ferrari. Over the past year, Peugeot Invest's prices ranged from €71.50 to €119.60, with a yearly change of 67.27%. Ferrari's prices fluctuated between $296.34 and $498.23, with a yearly change of 68.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.