Polaris vs Yamaha Which Is Superior?

Polaris and Yamaha are two leading companies in the recreational vehicle industry, known for their high-quality products such as snowmobiles, ATVs, and personal watercraft. Both companies have been competing fiercely in the market, with each trying to gain an edge over the other. Investors interested in the recreational vehicle sector often consider investing in Polaris or Yamaha stocks. This article will analyze the performance of Polaris vs Yamaha stocks and provide insights into which company may be a better investment option.

Polaris or Yamaha?

When comparing Polaris and Yamaha, 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 Polaris and Yamaha.

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. Polaris has a dividend yield of 4.18%, while Yamaha has a dividend yield of 3.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Polaris reports a 5-year dividend growth of 1.61% year and a payout ratio of 72.40%. On the other hand, Yamaha reports a 5-year dividend growth of -1.36% year and a payout ratio of 38.03%.

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 Polaris P/E ratio at 17.42 and Yamaha's P/E ratio at 16.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Polaris P/B ratio is 2.64 while Yamaha's P/B ratio is 1.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Polaris has seen a 5-year revenue growth of 0.61%, while Yamaha's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Polaris's ROE at 14.87% and Yamaha's ROE at 6.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.18 for Polaris and $7.00 for Yamaha. Over the past year, Polaris's prices ranged from $62.18 to $100.91, with a yearly change of 62.29%. Yamaha's prices fluctuated between $6.02 and $9.03, with a yearly change of 50.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.