Suzuki vs Honda Motor Which Is More Lucrative?

Suzuki and Honda are two prominent players in the global automotive industry, renowned for their high-quality motor vehicles and innovative technologies. Both companies have a strong presence in the stock market, with investors closely monitoring their performance. Suzuki and Honda stocks have shown varying trends over the years, affected by factors such as market demand, economic conditions, and industry competition. This comparison will delve into the financial performance of Suzuki and Honda stocks, shedding light on their strengths, weaknesses, and potential growth opportunities.

Suzuki or Honda Motor?

When comparing Suzuki and Honda Motor, 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 Suzuki and Honda Motor.

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. Suzuki has a dividend yield of 2.53%, while Honda Motor has a dividend yield of 4.28%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Suzuki reports a 5-year dividend growth of 20.11% year and a payout ratio of 0.00%. On the other hand, Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 33.52%.

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 Suzuki P/E ratio at 11.50 and Honda Motor's P/E ratio at 6.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Suzuki P/B ratio is 1.03 while Honda Motor's P/B ratio is 0.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Suzuki has seen a 5-year revenue growth of 0.05%, while Honda Motor's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suzuki's ROE at 9.50% and Honda Motor's ROE at 7.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1814.00 for Suzuki and $25.33 for Honda Motor. Over the past year, Suzuki's prices ranged from ¥1077.00 to ¥1989.00, with a yearly change of 84.68%. Honda Motor's prices fluctuated between $25.33 and $37.90, with a yearly change of 49.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.