Goodyear vs HP Which Should You Buy?

In the world of stocks, Goodyear and HP are two leading companies that have captured the attention of investors. Goodyear, a well-established tire manufacturing giant, boasts a strong global presence and a reputation for innovation and high-quality products. On the other hand, HP, a technology powerhouse, is known for its cutting-edge electronics and focus on sustainability. Both companies have seen fluctuations in their stock prices over the years, making them intriguing options for investors looking to diversify their portfolios. In this analysis, we will delve into the key factors influencing the performance of Goodyear vs HP stocks.

Goodyear or HP?

When comparing Goodyear and HP, 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 HP.

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 HP has a dividend yield of 3.16%. 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, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

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 HP's P/E ratio at 12.07. 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 HP's P/B ratio is 11.32.

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 HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and $34.90 for HP. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.