Suzuki vs TVS Which Performs Better?

Suzuki Motor Corporation and TVS Motor Company are prominent players in the automotive industry, with a strong presence in the two-wheeler segment. Both companies have a widespread market reach and offer a diverse range of products to cater to the varying needs of consumers. Investors often compare Suzuki and TVS stocks to analyze their financial performance, market position, and growth potential. Understanding the key differences and similarities between these two companies is crucial for making informed investment decisions in the stock market.

Suzuki or TVS?

When comparing Suzuki and TVS, 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 TVS.

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 2.43%, while TVS has a dividend yield of 0.79%. 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, TVS reports a 5-year dividend growth of 31.51% year and a payout ratio of 0.00%.

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 11.84 and TVS's P/E ratio at 25.25. 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 1.08 while TVS's P/B ratio is 7.26.

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 TVS's is 0.87%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suzuki's ROE at 9.50% and TVS's ROE at 33.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1792.00 for Suzuki and ₹11726.00 for TVS. Over the past year, Suzuki's prices ranged from ¥1077.00 to ¥1973.00, with a yearly change of 83.19%. TVS's prices fluctuated between ₹5465.00 and ₹15137.45, with a yearly change of 176.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.