Goodyear vs MRF Which Is Superior?

Goodyear and MRF are both leading players in the tire manufacturing industry, known for their high-quality products and strong market presence. Both companies have been operating for several decades and have established a strong reputation for innovation and customer satisfaction. While Goodyear is an American multinational company with a global presence, MRF is an Indian company with a strong foothold in the domestic market. Investors interested in the tire manufacturing sector may consider comparing the performance and growth potential of Goodyear and MRF stocks.

Goodyear or MRF?

When comparing Goodyear and MRF, 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 MRF.

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 MRF has a dividend yield of 0.15%. 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, MRF reports a 5-year dividend growth of 23.87% 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 MRF's P/E ratio at 28.45. 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 MRF's P/B ratio is 3.14.

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 MRF's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and MRF's ROE at 11.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and ₹130416.20 for MRF. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. MRF's prices fluctuated between ₹115500.05 and ₹151445.00, with a yearly change of 31.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.