Goodyear vs ATS Which Is More Reliable?

Goodyear and ATS are two well-known companies in the automotive industry, both specializing in the production of tires. Investors often compare these two stocks when looking for opportunities in the sector. Goodyear is a larger, more established company with a longer history, while ATS is a newer player in the market. Both companies have shown growth potential in recent years, but Goodyear's stock has historically been more stable and reliable. Investors should carefully consider the financial performance and market position of each company before making investment decisions.

Goodyear or ATS?

When comparing Goodyear and ATS, 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 ATS.

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 3.98%, while ATS has a dividend yield of -%. 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, ATS reports a 5-year dividend growth of 0.00% 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 11.35 and ATS's P/E ratio at 39.11. 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 ATS's P/B ratio is 2.60.

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 ATS's is 1.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and ATS's ROE at 7.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿176.00 for Goodyear and $30.96 for ATS. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. ATS's prices fluctuated between $24.82 and $44.70, with a yearly change of 80.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.