Renault vs Stellantis Which Is a Smarter Choice?

Renault and Stellantis are two major players in the automotive industry, each with a unique market presence and stock performance. Renault, a French multinational corporation, has a long-standing history in the auto industry and a strong brand recognition. Stellantis, on the other hand, is a recently merged entity formed by the merger of Fiat Chrysler Automobiles and PSA Group. Both companies have seen fluctuations in their stock prices due to various factors such as market trends, economic conditions, and company performance. Investors interested in the automotive sector may find both Renault and Stellantis stocks to be appealing options for potential investment opportunities.

Renault or Stellantis?

When comparing Renault and Stellantis, 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 Stellantis.

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 4.83%, while Stellantis has a dividend yield of 12.15%. 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, Stellantis reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.98%.

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 1.56 and Stellantis's P/E ratio at 2.82. 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 0.07 while Stellantis's P/B ratio is 0.46.

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 3.58%, while Stellantis's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Renault's ROE at 4.81% and Stellantis's ROE at 16.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.70 for Renault and $13.53 for Stellantis. Over the past year, Renault's prices ranged from $7.20 to $11.72, with a yearly change of 62.75%. Stellantis's prices fluctuated between $12.74 and $29.51, with a yearly change of 131.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.