Goodyear vs MTR Which Is a Better Investment?

Goodyear and MTR are two well-known companies in the automotive industry that produce tires for vehicles. Both companies are publicly traded on the stock market, making them popular investment choices for individuals looking to diversify their portfolios. Goodyear, a longstanding American brand, offers a wide range of tire options for various vehicles, while MTR, a newer player in the market, has gained attention for its innovative technology and eco-friendly practices. Investors often compare the performance of Goodyear and MTR stocks to determine which company offers the best investment opportunity.

Goodyear or MTR?

When comparing Goodyear and MTR, 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 MTR.

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 MTR has a dividend yield of 0.66%. 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, MTR reports a 5-year dividend growth of 3.23% year and a payout ratio of 78.70%.

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 MTR's P/E ratio at 49.55. 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 MTR's P/B ratio is 2.68.

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 MTR's is -0.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 0.82% and MTR's ROE at 5.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿157.50 for Goodyear and $9.87 for MTR. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. MTR's prices fluctuated between $9.86 and $11.97, with a yearly change of 21.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.