Goodyear vs Toyo Tire Which Offers More Value?

Goodyear and Toyo Tire are two major players in the tire industry, both known for their high-quality products and strong market presence. While Goodyear has a long-standing reputation and history dating back to 1898, Toyo Tire has quickly grown into a global powerhouse since its founding in 1945. Investors looking to potentially capitalize on the tire industry may find interest in comparing the stocks of these two companies, considering factors such as financial performance, market share, and innovation.

Goodyear or Toyo Tire?

When comparing Goodyear and Toyo Tire, 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 Tire.

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 Toyo Tire has a dividend yield of 5.39%. 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 Tire reports a 5-year dividend growth of 17.32% 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 11.29 and Toyo Tire's P/E ratio at 4.35. 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 Toyo Tire's P/B ratio is 0.82.

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 Tire's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 3.14% and Toyo Tire's ROE at 20.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿174.00 for Goodyear and ¥2398.00 for Toyo Tire. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Toyo Tire's prices fluctuated between ¥1867.00 and ¥2997.00, with a yearly change of 60.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.