Goodyear vs Nokian Renkaat Which Is More Profitable?

Goodyear and Nokian Renkaat are two prominent companies in the tire industry, each with its own strengths and market presence. Goodyear, a well-established American company, has a long history of producing high-quality tires and has a strong global presence. On the other hand, Nokian Renkaat, a Finnish company, is known for its focus on producing premium tires for harsh conditions. Both companies have seen fluctuations in their stock prices, making them interesting options for investors looking to diversify their portfolios.

Goodyear or Nokian Renkaat?

When comparing Goodyear and Nokian Renkaat, 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 Nokian Renkaat.

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 4.02%, while Nokian Renkaat has a dividend yield of 8.42%. 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, Nokian Renkaat reports a 5-year dividend growth of -23.17% year and a payout ratio of -2666.67%.

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 11.22 and Nokian Renkaat's P/E ratio at -192.52. 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 0.34 while Nokian Renkaat's P/B ratio is 0.42.

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 Nokian Renkaat's is -0.94%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and Nokian Renkaat's ROE at -0.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and $3.78 for Nokian Renkaat. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Nokian Renkaat's prices fluctuated between $3.74 and $5.05, with a yearly change of 35.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.