Goodyear vs Douglas Which Is a Better Investment?

Goodyear and Douglas are two prominent companies in the automotive industry, both specializing in the manufacturing of tires. While Goodyear is a well-established brand known for its high-quality and durable products, Douglas is a newer player in the market offering more affordable options. Investors often compare the stocks of these two companies to determine which may provide better returns in the long term. Factors such as market performance, brand reputation, and innovation play a significant role in analyzing the differences between the two stocks.

Goodyear or Douglas?

When comparing Goodyear and Douglas, 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 Douglas.

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 Douglas 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, Douglas 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 11.29 and Douglas's P/E ratio at -124.09. 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 Douglas's P/B ratio is 2.84.

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 Douglas's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and Douglas's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and €19.29 for Douglas. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Douglas's prices fluctuated between €16.83 and €25.50, with a yearly change of 51.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.