Goodyear vs Apollo Tyres Which Offers More Value?

Goodyear and Apollo Tyres are two major players in the global tire market, both with strong brand recognition and extensive product offerings. Goodyear, an American company, has a long history of innovation and a strong presence in the North American market. Apollo Tyres, an Indian company, has been rapidly expanding its global footprint through strategic acquisitions and partnerships. Both companies are influenced by factors such as raw material prices, competition, and economic conditions, making their stocks closely watched by investors.

Goodyear or Apollo Tyres?

When comparing Goodyear 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 Goodyear 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. Goodyear has a dividend yield of 4.0%, 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. Goodyear reports a 5-year dividend growth of 0.00% year and a payout ratio of 45.13%. 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 Goodyear P/E ratio at 11.29 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. Goodyear P/B ratio is 0.35 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, Goodyear has seen a 5-year revenue growth of 0.62%, while Apollo Tyres's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% 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 ฿174.00 for Goodyear and ₹536.30 for Apollo Tyres. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. 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.