Kumho Tire vs Goodyear Which Outperforms?

Kumho Tire and Goodyear are two well-known names in the tire industry, each with their own strengths and weaknesses when it comes to their respective stocks. Kumho Tire, a South Korean tire manufacturer, has been steadily growing in the global market with a focus on innovation and quality. On the other hand, Goodyear, an American company, is a longstanding player in the industry with a strong presence in both domestic and international markets. As investors consider both options, it is crucial to analyze their financial performance, market position, and potential for future growth.

Kumho Tire or Goodyear?

When comparing Kumho Tire and Goodyear, 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 Kumho Tire and Goodyear.

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. Kumho Tire has a dividend yield of -%, while Goodyear has a dividend yield of 4.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kumho Tire reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Goodyear reports a 5-year dividend growth of 0.00% year and a payout ratio of 174.40%.

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 Kumho Tire P/E ratio at 3.65 and Goodyear's P/E ratio at 39.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kumho Tire P/B ratio is 0.86 while Goodyear's P/B ratio is 0.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kumho Tire has seen a 5-year revenue growth of 0.22%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kumho Tire's ROE at 25.86% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩4290.00 for Kumho Tire and ฿157.50 for Goodyear. Over the past year, Kumho Tire's prices ranged from ₩4070.00 to ₩8360.00, with a yearly change of 105.41%. Goodyear's prices fluctuated between ฿135.00 and ฿197.50, with a yearly change of 46.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.