Toyo Tire vs Goodyear

Toyo Tire and Goodyear are two prominent players in the global tire industry, each with a long history of providing high-quality products to consumers. The stocks of these companies have gained attention from investors looking to capitalize on the growing demand for tires in both the automotive and non-automotive sectors. This comparison will analyze the financial performance, market position, and growth potential of Toyo Tire and Goodyear stocks to help investors make informed decisions on where to allocate their capital in the tire industry.

Toyo Tire or Goodyear?

When comparing Toyo 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 Toyo 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. Toyo Tire has a dividend yield of 6.03%, while Goodyear has a dividend yield of 4.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toyo Tire reports a 5-year dividend growth of 17.32% 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 Toyo Tire P/E ratio at 3.87 and Goodyear's P/E ratio at 37.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toyo Tire P/B ratio is 0.73 while Goodyear's P/B ratio is 0.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toyo Tire has seen a 5-year revenue growth of 0.32%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toyo Tire's ROE at 20.65% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2122.00 for Toyo Tire and ฿150.50 for Goodyear. Over the past year, Toyo Tire's prices ranged from ¥1867.00 to ¥2997.00, with a yearly change of 60.52%. 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.