LS vs Goodyear Which Is Stronger?

LS and Goodyear are two major players in the tire industry, each with their own strengths and weaknesses. LS, a South Korean company, has been rapidly expanding its market share and innovating with new technologies. On the other hand, Goodyear, an American company with a long history in the industry, has a strong brand presence and a loyal customer base. Investors looking to capitalize on the tire industry may want to compare the performance of LS and Goodyear stocks to make an informed investment decision.

LS or Goodyear?

When comparing LS 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 LS 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. LS has a dividend yield of 1.68%, while Goodyear has a dividend yield of 4.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LS reports a 5-year dividend growth of 5.06% year and a payout ratio of 20.76%. On the other hand, Goodyear reports a 5-year dividend growth of 0.00% year and a payout ratio of 45.13%.

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 LS P/E ratio at 5.24 and Goodyear's P/E ratio at 11.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LS P/B ratio is 0.53 while Goodyear's P/B ratio is 0.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LS has seen a 5-year revenue growth of 1.45%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LS's ROE at 10.39% and Goodyear's ROE at 3.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩91100.00 for LS and ฿174.00 for Goodyear. Over the past year, LS's prices ranged from ₩77200.00 to ₩194800.00, with a yearly change of 152.33%. 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.