Suzuki vs Hyundai Which Outperforms?

Suzuki and Hyundai are two major players in the automotive industry, known for their popular cars and motorcycles. When comparing their stocks, both companies have shown consistent growth and profitability over the years. However, Suzuki has a more niche market focus with its emphasis on small cars and motorcycles, while Hyundai has a broader range of vehicles and a larger global presence. Investors looking to capitalize on the automotive sector may find opportunities in both Suzuki and Hyundai stocks, but should carefully consider each company's unique market position and growth potential.

Suzuki or Hyundai?

When comparing Suzuki and Hyundai, 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 Hyundai.

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 2.52%, while Hyundai has a dividend yield of 3.02%. 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, Hyundai reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.26%.

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 11.55 and Hyundai's P/E ratio at 2.29. 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 1.04 while Hyundai's P/B ratio is 0.38.

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 Hyundai's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suzuki's ROE at 9.50% and Hyundai's ROE at 18.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1811.00 for Suzuki and ₩19800.00 for Hyundai. Over the past year, Suzuki's prices ranged from ¥1077.00 to ¥1989.00, with a yearly change of 84.68%. Hyundai's prices fluctuated between ₩16130.00 and ₩24500.00, with a yearly change of 51.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.