CEAT vs Yokohama Rubber Which Is More Reliable?

CEAT and Yokohama Rubber are two prominent companies in the tire manufacturing industry, known for producing high-quality, reliable products for various vehicles. CEAT, based in India, has established a strong presence in the market with a wide range of tires for different applications. On the other hand, Yokohama Rubber, a Japanese company, has a global reputation for its innovative technology and durable tires. Both companies have loyal customer bases and continue to thrive in the competitive automotive industry. This comparison explores the performance and financial outlook of both CEAT and Yokohama Rubber stocks.

CEAT or Yokohama Rubber?

When comparing CEAT 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 CEAT 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. CEAT has a dividend yield of 0.94%, while Yokohama Rubber has a dividend yield of 3.02%. 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, Yokohama Rubber reports a 5-year dividend growth of 6.26% year and a payout ratio of 15.68%.

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 22.71 and Yokohama Rubber's P/E ratio at 5.92. 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 3.06 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, CEAT has seen a 5-year revenue growth of 0.70%, while Yokohama Rubber's is 0.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CEAT's ROE at 14.10% 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 ₹3160.00 for CEAT and ¥3134.00 for Yokohama Rubber. Over the past year, CEAT's prices ranged from ₹2210.15 to ₹3578.80, with a yearly change of 61.93%. 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.