Stellantis vs Renault

Stellantis and Renault are two iconic automotive companies competing in the global market with their stocks garnering interest from investors. Stellantis, born from a merger between Fiat Chrysler Automobiles and Peugeot, boasts a diverse range of popular brands including Jeep, Dodge, and Peugeot. On the other hand, Renault has a long-standing reputation in the industry with brands like Dacia and Alpine under its umbrella. Both companies face challenges and opportunities in the ever-evolving automotive landscape, making their stocks intriguing options for investors looking to capitalize on the industry's growth.

Stellantis or Renault?

When comparing Stellantis and Renault, 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 Stellantis and Renault.

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. Stellantis has a dividend yield of 12.79%, while Renault has a dividend yield of 5.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stellantis reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.98%. On the other hand, Renault reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.16%.

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 Stellantis P/E ratio at 2.62 and Renault's P/E ratio at 1.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stellantis P/B ratio is 0.43 while Renault's P/B ratio is 0.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Stellantis has seen a 5-year revenue growth of -0.14%, while Renault's is 3.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Stellantis's ROE at 16.27% and Renault's ROE at 4.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.89 for Stellantis and $8.52 for Renault. Over the past year, Stellantis's prices ranged from $12.74 to $29.51, with a yearly change of 131.63%. Renault's prices fluctuated between $6.66 and $11.72, with a yearly change of 76.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.