Goodyear vs Goodyear Tire & Rubber Which Is More Attractive?

Goodyear Tire & Rubber Company is a well-known American tire manufacturer with a long history dating back to its founding in 1898. However, there is some confusion in the stock market between Goodyear and Goodyear Tire & Rubber stocks. While both entities are related to the same company, Goodyear refers to the parent company, while Goodyear Tire & Rubber stocks specifically represent the publicly traded shares of the tire manufacturing division. Understanding the distinction between the two can help investors make informed decisions when trading stocks in this industry.

Goodyear or Goodyear Tire & Rubber?

When comparing Goodyear and Goodyear Tire & 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 Goodyear and Goodyear Tire & 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. Goodyear has a dividend yield of 3.98%, while Goodyear Tire & Rubber 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, Goodyear Tire & Rubber 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 Goodyear Tire & Rubber's P/E ratio at -9.73. 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 Goodyear Tire & Rubber's P/B ratio is 0.61.

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 Goodyear Tire & Rubber's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and Goodyear Tire & Rubber's ROE at -6.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿176.00 for Goodyear and $10.03 for Goodyear Tire & Rubber. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Goodyear Tire & Rubber's prices fluctuated between $7.27 and $15.24, with a yearly change of 109.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.