Goodyear vs Yokohama Rubber Which Is More Promising?

Goodyear and Yokohama Rubber are two leading companies in the tire manufacturing industry. Both companies have a long-standing history and a reputation for producing high-quality products. Investors often compare the stocks of these companies to determine which one offers a better investment opportunity. Factors such as financial performance, market share, technological advancements, and growth potential play a significant role in the valuation of their stocks. By analyzing the performance of Goodyear and Yokohama Rubber stocks, investors can make informed decisions about their investment portfolios.

Goodyear or Yokohama Rubber?

When comparing Goodyear and Yokohama Rubber, 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 Yokohama Rubber.

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 Yokohama Rubber has a dividend yield of 2.99%. 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, Yokohama Rubber reports a 5-year dividend growth of 6.26% year and a payout ratio of 15.70%.

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 Yokohama Rubber's P/E ratio at 5.94. 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 Yokohama Rubber's P/B ratio is 0.57.

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 Yokohama Rubber's is 0.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goodyear's ROE at 0.82% and Yokohama Rubber's ROE at 10.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿157.50 for Goodyear and ¥3168.00 for Yokohama Rubber. Over the past year, Goodyear's prices ranged from ฿135.00 to ฿197.50, with a yearly change of 46.30%. Yokohama Rubber's prices fluctuated between ¥2530.50 and ¥4295.00, with a yearly change of 69.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.