Apollo Tyres vs Yokohama Rubber

Apollo Tyres and Yokohama Rubber are two prominent players in the global tire industry. Apollo Tyres, based in India, has a strong presence in the Asian and African markets, while Yokohama Rubber, a Japanese company, is known for its high-quality products and innovative technology. Both companies have been performing well in recent years, but there are differences in their financial performance and market strategies. This comparison aims to analyze the stocks of Apollo Tyres and Yokohama Rubber to provide insights for potential investors.

Apollo Tyres or Yokohama Rubber?

When comparing Apollo Tyres and Yokohama Rubber, 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 Yokohama Rubber.

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 Yokohama Rubber has a dividend yield of 3.0%. 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, Yokohama Rubber reports a 5-year dividend growth of 6.26% year and a payout ratio of 15.70%.

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 Apollo Tyres P/E ratio at 20.10 and Yokohama Rubber's P/E ratio at 5.93. 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 Yokohama Rubber's P/B ratio is 0.57.

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 Yokohama Rubber's is 0.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apollo Tyres's ROE at 12.10% and Yokohama Rubber's ROE at 10.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹505.85 for Apollo Tyres and ¥3136.00 for Yokohama Rubber. Over the past year, Apollo Tyres's prices ranged from ₹368.10 to ₹584.90, with a yearly change of 58.90%. Yokohama Rubber's prices fluctuated between ¥2530.50 and ¥4295.00, with a yearly change of 69.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.