Yokohama Rubber vs Goodyear Which Offers More Value?

Yokohama Rubber and Goodyear are two prominent players in the global tire industry with established track records and a strong presence in international markets. Both companies have consistently shown growth and innovation in their product offerings, leading to their popularity among consumers and investors alike. Yokohama Rubber, based in Japan, and Goodyear, based in the United States, are often compared in terms of financial performance, market share, and overall industry impact. This analysis will delve into the key factors driving the stocks of these two industry giants.

Yokohama Rubber or Goodyear?

When comparing Yokohama Rubber 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 Yokohama Rubber 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. Yokohama Rubber has a dividend yield of 2.99%, while Goodyear has a dividend yield of 4.44%. 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, 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 Yokohama Rubber P/E ratio at 5.94 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. Yokohama Rubber P/B ratio is 0.57 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, Yokohama Rubber has seen a 5-year revenue growth of 0.52%, while Goodyear's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yokohama Rubber's ROE at 10.71% and Goodyear's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3168.00 for Yokohama Rubber and ฿157.50 for Goodyear. Over the past year, Yokohama Rubber's prices ranged from ¥2530.50 to ¥4295.00, with a yearly change of 69.73%. 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.