Goodyear vs TOYO Which Offers More Value?

Goodyear and TOYO are two prominent companies in the tire manufacturing industry, each with its own strengths and areas of expertise. Goodyear, established in 1898, is known for its long history and reputation for quality and innovation. On the other hand, TOYO, founded in 1945, has gained a strong presence in the market with a focus on performance and durability. Both companies have seen fluctuations in their stock prices, making it essential for investors to carefully analyze the potential risks and rewards of investing in either Goodyear or TOYO.

Goodyear or TOYO?

When comparing Goodyear and TOYO, 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 TOYO.

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 TOYO has a dividend yield of 4.75%. 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, TOYO reports a 5-year dividend growth of 12.47% 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 11.22 and TOYO's P/E ratio at 10.95. 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 TOYO's P/B ratio is 1.07.

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 TOYO's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and TOYO's ROE at 9.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and ¥1410.00 for TOYO. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. TOYO's prices fluctuated between ¥1270.00 and ¥1761.00, with a yearly change of 38.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.