Apollo Tyres vs Goodyear

Apollo Tyres and Goodyear are two major players in the global tire industry, both boasting a strong presence in the market. Apollo Tyres, an Indian-based company, has been steadily growing its business and expanding its product offerings. On the other hand, Goodyear, a well-established American company, has a long history of providing high-quality tires to consumers worldwide. Investors looking to make a decision between these two stocks will need to carefully analyze their financial performance, market trends, and growth potential.

Apollo Tyres or Goodyear?

When comparing Apollo Tyres and Goodyear, 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 Apollo Tyres and Goodyear.

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. Apollo Tyres has a dividend yield of 1.17%, while Goodyear has a dividend yield of 4.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apollo Tyres reports a 5-year dividend growth of -30.12% year and a payout ratio of 0.00%. On the other hand, Goodyear reports a 5-year dividend growth of 0.00% year and a payout ratio of 174.40%.

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 Apollo Tyres P/E ratio at 20.10 and Goodyear's P/E ratio at 37.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apollo Tyres P/B ratio is 2.35 while Goodyear's P/B ratio is 0.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apollo Tyres has seen a 5-year revenue growth of 0.32%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apollo Tyres's ROE at 12.10% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹505.85 for Apollo Tyres and ฿150.50 for Goodyear. Over the past year, Apollo Tyres's prices ranged from ₹368.10 to ₹584.90, with a yearly change of 58.90%. Goodyear's prices fluctuated between ฿135.00 and ฿197.50, with a yearly change of 46.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.