TYM vs Kubota Which Offers More Value?

TYM and Kubota are both well-known companies in the agricultural machinery industry, specializing in manufacturing tractors and other farm equipment. Investors often compare the performance of TYM and Kubota stocks when considering where to allocate their capital. While both companies have seen growth in recent years, the two stocks differ in terms of market share, revenue, and brand recognition. Understanding the unique strengths and weaknesses of TYM and Kubota can help investors make informed decisions about their investment portfolios.

TYM or Kubota?

When comparing TYM and Kubota, 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 TYM and Kubota.

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. TYM has a dividend yield of 3.26%, while Kubota has a dividend yield of 0.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TYM reports a 5-year dividend growth of 0.00% year and a payout ratio of 41.79%. On the other hand, Kubota reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.70%.

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 TYM P/E ratio at 12.75 and Kubota's P/E ratio at 42.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TYM P/B ratio is 0.54 while Kubota's P/B ratio is 4.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TYM has seen a 5-year revenue growth of 1.59%, while Kubota's is -0.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TYM's ROE at 4.19% and Kubota's ROE at 11.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩4860.00 for TYM and $61.50 for Kubota. Over the past year, TYM's prices ranged from ₩2725.00 to ₩6280.00, with a yearly change of 130.46%. Kubota's prices fluctuated between $59.39 and $85.00, with a yearly change of 43.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.