Suzuki vs Renault Which Is More Lucrative?

Suzuki and Renault are both major players in the automotive industry, with strong international presence and diverse product offerings. When comparing their stocks, investors often consider factors such as market performance, financial stability, and growth potential. Suzuki's stock has shown steady growth over the years, benefiting from its strong position in emerging markets. On the other hand, Renault's stock has been more volatile due to various internal and external factors. Both companies present unique opportunities and risks for potential investors.

Suzuki or Renault?

When comparing Suzuki 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 Suzuki 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. Suzuki has a dividend yield of 2.53%, while Renault has a dividend yield of 4.46%. 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, 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 Suzuki P/E ratio at 11.50 and Renault's P/E ratio at 1.69. 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 Renault's P/B ratio is 0.08.

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 Renault's is 3.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suzuki's ROE at 9.50% and Renault's ROE at 4.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1814.00 for Suzuki and $9.23 for Renault. Over the past year, Suzuki's prices ranged from ¥1077.00 to ¥1989.00, with a yearly change of 84.68%. Renault's prices fluctuated between $7.25 and $11.72, with a yearly change of 61.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.