Goodyear vs Pirelli & C Which Offers More Value?

Both Goodyear and Pirelli are well-known tire manufacturers that have been competing for market share in the automotive industry for years. As two of the largest tire companies in the world, investors often compare their stocks to determine which offers the best potential for growth and returns. Goodyear, based in the United States, and Pirelli, based in Italy, both have strong brand recognition and a history of innovation, making their stocks attractive options for investors looking to capitalize on the global automotive market.

Goodyear or Pirelli & C?

When comparing Goodyear and Pirelli & C, 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 Pirelli & C.

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 Pirelli & C has a dividend yield of 3.83%. 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, Pirelli & C reports a 5-year dividend growth of 0.00% year and a payout ratio of 91.36%.

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 Pirelli & C's P/E ratio at 11.26. 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 Pirelli & C's P/B ratio is 0.93.

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 Pirelli & C's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 0.82% and Pirelli & C's ROE at 8.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿157.50 for Goodyear and €5.10 for Pirelli & C. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Pirelli & C's prices fluctuated between €4.39 and €6.31, with a yearly change of 43.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.