Yokohama Rubber vs CEAT Which Offers More Value?

Yokohama Rubber Co., Ltd. and CEAT Ltd. are two influential players in the global rubber and tire industry. Yokohama Rubber is a leading Japanese tire manufacturer known for its high-quality products and innovative technology. On the other hand, CEAT is a prominent Indian tire company with a strong presence in the domestic and international markets. Both companies have experienced growth and success in recent years, making them attractive options for investors looking to diversify their portfolio within the automotive sector.

Yokohama Rubber or CEAT?

When comparing Yokohama Rubber and CEAT, 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 CEAT.

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 3.02%, while CEAT has a dividend yield of 0.94%. 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 15.68%. On the other hand, CEAT reports a 5-year dividend growth of 0.85% 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 5.92 and CEAT's P/E ratio at 22.71. 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 CEAT's P/B ratio is 3.06.

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 CEAT's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yokohama Rubber's ROE at 10.71% and CEAT's ROE at 14.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3134.00 for Yokohama Rubber and ₹3160.00 for CEAT. Over the past year, Yokohama Rubber's prices ranged from ¥2530.50 to ¥4295.00, with a yearly change of 69.73%. CEAT's prices fluctuated between ₹2210.15 and ₹3578.80, with a yearly change of 61.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.