CEAT vs Apollo Tyres Which Performs Better?

CEAT and Apollo Tyres are two prominent players in the Indian tire industry, each with a strong market presence and impressive track records. CEAT is known for its innovative product offerings and robust distribution network, while Apollo Tyres has established a reputation for quality and reliability. Investors often compare the performance of these two stocks to determine which offers a better investment opportunity. Understanding the key differences and similarities between CEAT and Apollo Tyres can help investors make informed decisions in the ever-changing stock market.

CEAT or Apollo Tyres?

When comparing CEAT and Apollo Tyres, 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 CEAT and Apollo Tyres.

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. CEAT has a dividend yield of 0.97%, while Apollo Tyres has a dividend yield of 1.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CEAT reports a 5-year dividend growth of 0.85% year and a payout ratio of 0.00%. On the other hand, Apollo Tyres reports a 5-year dividend growth of -30.12% 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 CEAT P/E ratio at 22.12 and Apollo Tyres's P/E ratio at 23.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CEAT P/B ratio is 2.98 while Apollo Tyres's P/B ratio is 2.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CEAT has seen a 5-year revenue growth of 0.70%, while Apollo Tyres's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CEAT's ROE at 14.10% and Apollo Tyres's ROE at 10.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹3075.00 for CEAT and ₹536.30 for Apollo Tyres. Over the past year, CEAT's prices ranged from ₹2210.15 to ₹3263.00, with a yearly change of 47.64%. Apollo Tyres's prices fluctuated between ₹419.25 and ₹584.90, with a yearly change of 39.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.