Apollo Tyres vs JK Tyre & Industries Which Is More Lucrative?

Apollo Tyres and JK Tyre & Industries are two leading players in the Indian tyre industry. Both companies are known for their high-quality products and strong market presence. Investors are often torn between which stock to invest in, as both companies have their own strengths and opportunities. Apollo Tyres has a larger market share and a global presence, while JK Tyre & Industries is known for its diversified product range and strong distribution network. It ultimately comes down to individual investment goals and risk tolerance.

Apollo Tyres or JK Tyre & Industries?

When comparing Apollo Tyres and JK Tyre & Industries, 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 JK Tyre & Industries.

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 1.11%, while JK Tyre & Industries has a dividend yield of 1.1%. 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, JK Tyre & Industries reports a 5-year dividend growth of 5.92% 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 Apollo Tyres P/E ratio at 23.71 and JK Tyre & Industries's P/E ratio at 15.20. 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 2.40 while JK Tyre & Industries's P/B ratio is 2.38.

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 0.30%, while JK Tyre & Industries's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apollo Tyres's ROE at 10.53% and JK Tyre & Industries's ROE at 16.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹536.65 for Apollo Tyres and ₹405.95 for JK Tyre & Industries. Over the past year, Apollo Tyres's prices ranged from ₹419.25 to ₹584.90, with a yearly change of 39.51%. JK Tyre & Industries's prices fluctuated between ₹345.20 and ₹553.95, with a yearly change of 60.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.