Goodyear vs Adventure Which Is a Smarter Choice?

Certainly! Goodyear and Adventure stocks offer investors two different avenues for potential growth and profitability. Goodyear, a well-established tire manufacturing company, provides stability and consistent returns through its strong brand recognition and presence in the global market. On the other hand, Adventure stocks offer the excitement of investing in emerging industries and innovative companies, with the potential for higher returns but also greater risk. Both options have their own unique advantages and considerations for investors to weigh.

Goodyear or Adventure?

When comparing Goodyear and Adventure, 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 Goodyear and Adventure.

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. Goodyear has a dividend yield of 4.0%, while Adventure has a dividend yield of 0.53%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goodyear reports a 5-year dividend growth of 0.00% year and a payout ratio of 45.13%. On the other hand, Adventure reports a 5-year dividend growth of -11.27% year and a payout ratio of 22.05%.

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 Goodyear P/E ratio at 11.29 and Adventure's P/E ratio at 37.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Goodyear P/B ratio is 0.35 while Adventure's P/B ratio is 2.53.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Goodyear has seen a 5-year revenue growth of 0.62%, while Adventure's is -0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and Adventure's ROE at 6.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and ¥3745.00 for Adventure. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Adventure's prices fluctuated between ¥3145.00 and ¥5730.00, with a yearly change of 82.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.