Goodyear vs Kumho Tire Which Is a Better Investment?

Goodyear and Kumho Tire stocks are two major players in the global tire market, each with a strong reputation for quality and performance. Goodyear, an American company founded in 1898, is known for its innovative tire technology and long-standing presence in the industry. On the other hand, Kumho Tire, a South Korean company established in 1960, has gained recognition for its high-quality products and competitive pricing. Both companies have experienced fluctuations in their stock prices in recent years, presenting investors with opportunities for growth and potential risks.

Goodyear or Kumho Tire?

When comparing Goodyear and Kumho Tire, 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 Kumho Tire.

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 4.44%, while Kumho Tire 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 174.40%. On the other hand, Kumho Tire 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 39.24 and Kumho Tire's P/E ratio at 3.65. 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 0.32 while Kumho Tire's P/B ratio is 0.86.

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 Kumho Tire's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 0.82% and Kumho Tire's ROE at 25.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿157.50 for Goodyear and ₩4290.00 for Kumho Tire. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Kumho Tire's prices fluctuated between ₩4070.00 and ₩8360.00, with a yearly change of 105.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.