Renault vs Mazda Which Is a Better Investment?

Renault and Mazda stocks are two highly popular and well-established automotive companies in the global market. Renault, a French multinational corporation, has a long history of producing a wide range of vehicles, while Mazda, a Japanese automotive manufacturer, is known for its innovative technologies and stylish designs. Both companies have their own unique strengths and weaknesses, making them attractive investment options for individuals looking to diversify their stock portfolio. In this article, we will compare and analyze the performance of Renault and Mazda stocks in the market.

Renault or Mazda?

When comparing Renault 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 Renault 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. Renault has a dividend yield of 4.55%, while Mazda has a dividend yield of 1.19%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Renault reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.16%. 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 Renault P/E ratio at 1.66 and Mazda's P/E ratio at 18.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Renault P/B ratio is 0.08 while Mazda's P/B ratio is 2.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Renault has seen a 5-year revenue growth of 3.51%, while Mazda's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Renault's ROE at 4.81% and Mazda's ROE at 14.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.16 for Renault and ₹1329.95 for Mazda. Over the past year, Renault's prices ranged from $7.25 to $11.72, with a yearly change of 61.63%. 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.