Toyota Industries vs Toyota Motor Which Offers More Value?

Toyota Industries and Toyota Motor are two separate entities within the Toyota Group conglomerate. Toyota Industries is primarily focused on manufacturing auto parts and machinery, while Toyota Motor is well-known for producing automobiles. Despite their close relationship, the two companies have separate stocks listed on the stock market. Investors often compare performance between the two stocks to gain insights into the overall health of the Toyota Group as a whole. Understanding the differences in their respective industries and the factors influencing their stock prices is essential for making informed investment decisions.

Toyota Industries or Toyota Motor?

When comparing Toyota Industries and Toyota 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 Toyota Industries and Toyota 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. Toyota Industries has a dividend yield of 2.48%, while Toyota Motor has a dividend yield of 2.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toyota Industries reports a 5-year dividend growth of -0.02% year and a payout ratio of 29.45%. On the other hand, Toyota Motor reports a 5-year dividend growth of 2.65% year and a payout ratio of 23.74%.

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 Toyota Industries P/E ratio at 13.72 and Toyota Motor's P/E ratio at 8.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toyota Industries P/B ratio is 0.60 while Toyota Motor's P/B ratio is 1.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toyota Industries has seen a 5-year revenue growth of 0.69%, while Toyota Motor's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toyota Industries's ROE at 4.69% and Toyota Motor's ROE at 12.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $72.00 for Toyota Industries and $175.05 for Toyota Motor. Over the past year, Toyota Industries's prices ranged from $66.49 to $106.84, with a yearly change of 60.69%. Toyota Motor's prices fluctuated between $159.04 and $255.23, with a yearly change of 60.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.