ATS vs Goodyear Which Is Superior?

ATS Inc. and Goodyear Tire & Rubber Company are two major players in the automotive industry, with both companies specializing in the production and sale of tires. While ATS Inc. focuses primarily on providing commercial and industrial tires, Goodyear offers a wide range of consumer and commercial tire options. Both companies have seen fluctuations in their stock prices in recent years, making them of interest to investors looking to diversify their portfolios within the automotive sector.

ATS or Goodyear?

When comparing ATS 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 ATS 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. ATS has a dividend yield of -%, while Goodyear has a dividend yield of 4.12%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATS reports a 5-year dividend growth of 0.00% 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 ATS P/E ratio at 34.97 and Goodyear's P/E ratio at 42.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATS P/B ratio is 2.33 while Goodyear's P/B ratio is 0.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATS has seen a 5-year revenue growth of 1.30%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATS's ROE at 7.32% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.94 for ATS and ฿167.50 for Goodyear. Over the past year, ATS's prices ranged from $24.82 to $44.70, with a yearly change of 80.10%. 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.