Ryobi vs Makita Which Is More Promising?

Ryobi and Makita are both well-known power tool brands that offer a wide range of products for DIY enthusiasts and professionals alike. When it comes to comparing their stocks, there are some key differences to consider. Ryobi is known for its affordable prices and entry-level tools, while Makita is prized for its high-quality, professional-grade tools. Both brands have loyal followings, with Ryobi catering to the budget-conscious consumer and Makita appealing to those who demand top-notch performance and durability. In this article, we will delve deeper into the strengths and weaknesses of both brands when it comes to their stocks.

Ryobi or Makita?

When comparing Ryobi and Makita, 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 Ryobi and Makita.

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. Ryobi has a dividend yield of 4.75%, while Makita has a dividend yield of 1.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ryobi reports a 5-year dividend growth of -5.29% year and a payout ratio of 24.48%. On the other hand, Makita reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.61%.

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 Ryobi P/E ratio at 5.63 and Makita's P/E ratio at 26.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ryobi P/B ratio is 0.35 while Makita's P/B ratio is 1.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ryobi has seen a 5-year revenue growth of -0.02%, while Makita's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ryobi's ROE at 6.70% and Makita's ROE at 5.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1804.00 for Ryobi and $30.48 for Makita. Over the past year, Ryobi's prices ranged from ¥1580.00 to ¥3215.00, with a yearly change of 103.48%. Makita's prices fluctuated between $23.38 and $35.49, with a yearly change of 51.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.