Suzuki vs Yamaha Which Is More Favorable?

Suzuki and Yamaha are two major players in the automotive and motorcycle industries with a long-standing rivalry that extends to their stock performance. Investors often compare Suzuki vs Yamaha stocks to analyze which company offers better growth potential and profitability. Both companies have loyal customer bases and innovative product lines that drive their stock performance. Understanding the strengths and weaknesses of each company is crucial for investors looking to make informed decisions in the competitive market.

Suzuki or Yamaha?

When comparing Suzuki and Yamaha, 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 Yamaha.

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 2.44%, while Yamaha has a dividend yield of 3.21%. 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, Yamaha reports a 5-year dividend growth of -1.36% year and a payout ratio of 38.03%.

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 11.93 and Yamaha's P/E ratio at 16.64. 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 1.07 while Yamaha's P/B ratio is 1.03.

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 Yamaha's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suzuki's ROE at 9.50% and Yamaha's ROE at 6.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1856.00 for Suzuki and $7.20 for Yamaha. Over the past year, Suzuki's prices ranged from ¥1077.00 to ¥1989.00, with a yearly change of 84.68%. Yamaha's prices fluctuated between $6.02 and $9.03, with a yearly change of 50.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.