TOYO vs Goodyear Which Should You Buy?

Toyo and Goodyear are two prominent players in the global tire manufacturing industry, each with a long history of delivering quality products to consumers. Investors often compare the two companies' stocks to determine which may be a better investment opportunity. Toyo Corporation, based in Japan, has been expanding its market presence steadily, while Goodyear, a well-established American brand, has a strong reputation for innovation and customer satisfaction. Analyzing factors such as financial performance, market trends, and future growth potential can help investors make informed decisions when considering investing in Toyo vs. Goodyear stocks.

TOYO or Goodyear?

When comparing TOYO 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 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 has a dividend yield of 4.24%, while Goodyear has a dividend yield of 4.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TOYO reports a 5-year dividend growth of 12.47% 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 P/E ratio at 12.26 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. TOYO P/B ratio is 1.19 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, TOYO has seen a 5-year revenue growth of 0.30%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TOYO's ROE at 9.95% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1566.00 for TOYO and ฿157.50 for Goodyear. Over the past year, TOYO's prices ranged from ¥1270.00 to ¥1761.00, with a yearly change of 38.66%. 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.