Renault vs Volvo Car Which Is More Lucrative?

Renault and Volvo are two major players in the automotive industry, known for their innovative designs and reliable performance. Both companies have a strong presence in the global market, with a loyal customer base and a long history of producing high-quality vehicles. Investors often compare Renault and Volvo car stocks when considering potential investments in the automotive sector. In this analysis, we will examine the financial performance, market position, and future prospects of Renault and Volvo to determine which company may be the better investment option.

Renault or Volvo Car?

When comparing Renault and Volvo Car, 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 Volvo Car.

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 Volvo Car has a dividend yield of 1.62%. 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, Volvo Car reports a 5-year dividend growth of 0.00% 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 1.56 and Volvo Car's P/E ratio at 11.34. 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 Volvo Car's P/B ratio is 1.04.

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 Volvo Car's is -0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Renault's ROE at 4.81% and Volvo Car's ROE at 9.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.70 for Renault and $4.46 for Volvo Car. Over the past year, Renault's prices ranged from $7.20 to $11.72, with a yearly change of 62.75%. Volvo Car's prices fluctuated between $3.97 and $8.15, with a yearly change of 105.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.