Goodyear vs LS Which Is More Favorable?

Goodyear and LS stocks are two companies that operate in different sectors of the market - Goodyear is a well-known tire manufacturer, while LS is a leading provider of industrial machinery. Both companies have seen fluctuations in their stock prices in recent years, with Goodyear facing challenges in the competitive automotive industry and LS benefiting from increased demand for its products. Investors looking to diversify their portfolios may consider both Goodyear and LS stocks for potential growth opportunities.

Goodyear or LS?

When comparing Goodyear and LS, 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 LS.

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 LS has a dividend yield of 1.46%. 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, LS reports a 5-year dividend growth of 5.06% year and a payout ratio of 21.10%.

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 LS's P/E ratio at 6.10. 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 LS's P/B ratio is 0.62.

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 LS's is 1.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 0.82% and LS's ROE at 10.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿157.50 for Goodyear and ₩108400.00 for LS. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. LS's prices fluctuated between ₩75400.00 and ₩194800.00, with a yearly change of 158.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.