Goodyear vs SL Which Outperforms?

Goodyear and SL stocks are two prominent companies in the automotive industry, each with its own distinct characteristics and performance in the stock market. Goodyear, a well-established tire manufacturer known for its innovative technology and quality products, has been a reliable choice for investors seeking stability and growth. On the other hand, SL, a newer player in the market, has been making waves with its cutting-edge electric vehicle technology and ambitious growth plans. Both companies present unique opportunities for investors to diversify their portfolios and capitalize on the evolving trends in the automotive sector.

Goodyear or SL?

When comparing Goodyear and SL, 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 SL.

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 SL has a dividend yield of 2.98%. 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, SL reports a 5-year dividend growth of 17.61% year and a payout ratio of 12.35%.

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 SL's P/E ratio at 3.74. 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 SL's P/B ratio is 0.64.

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 SL's is 1.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and SL's ROE at 17.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and ₩29650.00 for SL. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. SL's prices fluctuated between ₩28400.00 and ₩47650.00, with a yearly change of 67.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.