Apollo Tyres vs MRF Which Is More Favorable?

Apollo Tyres and MRF are two of the leading tyre manufacturing companies in India, with a strong presence in both domestic and international markets. Their stocks have been closely followed by investors and analysts due to their performance and growth potential. Apollo Tyres has shown strong growth in recent years, expanding its market share and product range. On the other hand, MRF has a long-standing reputation for quality and innovation in the tyre industry. Both companies have their strengths and weaknesses, making them interesting options for investors looking to diversify their portfolio.

Apollo Tyres or MRF?

When comparing Apollo Tyres and MRF, 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 MRF.

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 MRF has a dividend yield of 0.15%. 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, MRF reports a 5-year dividend growth of 23.87% 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 MRF's P/E ratio at 28.72. 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 MRF's P/B ratio is 3.17.

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 MRF's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apollo Tyres's ROE at 10.53% and MRF's ROE at 11.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹536.65 for Apollo Tyres and ₹131655.60 for MRF. Over the past year, Apollo Tyres's prices ranged from ₹419.25 to ₹584.90, with a yearly change of 39.51%. MRF's prices fluctuated between ₹115500.05 and ₹151445.00, with a yearly change of 31.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.