Yokohama Rubber vs Apollo Tyres

Yokohama Rubber Co., Ltd. and Apollo Tyres Ltd. are two prominent players in the global tire industry, known for their innovative products and strong presence in key markets. Both companies have displayed resilience and adaptability in the face of changing market dynamics, and their stocks have attracted the interest of investors looking for opportunities in the automotive sector. This article explores the performance and prospects of Yokohama Rubber and Apollo Tyres stocks, offering insights for investors seeking to make informed decisions in the dynamic world of tire manufacturing.

Yokohama Rubber or Apollo Tyres?

When comparing Yokohama Rubber and Apollo Tyres, 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 Yokohama Rubber and Apollo Tyres.

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. Yokohama Rubber has a dividend yield of 3.0%, while Apollo Tyres has a dividend yield of 1.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Yokohama Rubber reports a 5-year dividend growth of 6.26% year and a payout ratio of 15.70%. On the other hand, Apollo Tyres reports a 5-year dividend growth of -30.12% year and a payout ratio of 0.00%.

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 Yokohama Rubber P/E ratio at 5.93 and Apollo Tyres's P/E ratio at 20.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yokohama Rubber P/B ratio is 0.57 while Apollo Tyres's P/B ratio is 2.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yokohama Rubber has seen a 5-year revenue growth of 0.52%, while Apollo Tyres's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yokohama Rubber's ROE at 10.71% and Apollo Tyres's ROE at 12.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3136.00 for Yokohama Rubber and ₹505.85 for Apollo Tyres. Over the past year, Yokohama Rubber's prices ranged from ¥2530.50 to ¥4295.00, with a yearly change of 69.73%. Apollo Tyres's prices fluctuated between ₹368.10 and ₹584.90, with a yearly change of 58.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.