Sailun vs Westlake Which Is a Smarter Choice?

Sailun and Westlake are both prominent players in the tire manufacturing industry, each with a strong presence in the global market. Sailun, a Chinese company, focuses on producing high-quality tires for a range of vehicles, while Westlake, an American company, offers a wide variety of budget-friendly tire options. Investors may be drawn to Sailun's reputation for reliability and innovation, while Westlake's competitive pricing may appeal to those looking for cost-effective investment opportunities in the tire sector.

Sailun or Westlake?

When comparing Sailun and Westlake, 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 Sailun and Westlake.

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. Sailun has a dividend yield of 2.26%, while Westlake has a dividend yield of 1.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sailun reports a 5-year dividend growth of 24.57% year and a payout ratio of 29.85%. On the other hand, Westlake reports a 5-year dividend growth of 13.25% year and a payout ratio of 267.35%.

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 Sailun P/E ratio at 10.58 and Westlake's P/E ratio at 156.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sailun P/B ratio is 2.40 while Westlake's P/B ratio is 1.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sailun has seen a 5-year revenue growth of 0.66%, while Westlake's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sailun's ROE at 25.00% and Westlake's ROE at 0.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥13.96 for Sailun and $118.65 for Westlake. Over the past year, Sailun's prices ranged from ¥10.99 to ¥17.75, with a yearly change of 61.51%. Westlake's prices fluctuated between $118.64 and $162.64, with a yearly change of 37.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.