Comparing Bridgestone (BRDCY) and The Competition

Bridgestone (OTCMKTS:BRDCY) is one of 119 public companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Bridgestone to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Risk & Volatility

Bridgestone has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Bridgestone’s competitors have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bridgestone and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	3	0	2	2.80
Bridgestone Competitors	2058	5055	6311	188	2.34

As a group, “Automobiles” companies have a potential upside of 67.79%. Given Bridgestone’s competitors higher possible upside, analysts clearly believe Bridgestone has less favorable growth aspects than its competitors.

Profitability

This table compares Bridgestone and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgestone	N/A	N/A	N/A
Bridgestone Competitors	-1,522.43%	-122.16%	-11.65%

Dividends

Bridgestone pays an annual dividend of $0.11 per share and has a dividend yield of 0.8%. Bridgestone pays out 17.2% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 145.5% and pay out 7.2% of their earnings in the form of a dividend. Bridgestone lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Bridgestone and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bridgestone	$29.63 billion	$2.19 billion	20.39
Bridgestone Competitors	$812.37 billion	$1.13 billion	7.68

Bridgestone’s competitors have higher revenue, but lower earnings than Bridgestone. Bridgestone is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

39.1% of shares of all “Automobiles” companies are held by institutional investors. 57.1% of Bridgestone shares are held by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Bridgestone beats its competitors on 8 of the 15 factors compared.

Bridgestone Company Profile

Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company offers tires and tire tubes for passenger cars, trucks, buses, construction and off-road mining vehicles, industrial and agricultural machinery, aircraft, motorcycles, scooters, and other vehicles; automotive parts; automotive maintenance and repair services; and raw materials for tires and other products. It also provides chemical products, such as belts, hoses, rubber crawlers/MT pads, resin piping systems, seismic isolation rubbers, bridge rubber bearings, and block type rubber covered chain type bridge fall prevention devices. In addition, the company offers golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others; and finance and other services. It has operations in Japan, the Americas, Europe, Russia, the Middle East, India, Africa, China, Asia, Oceania, Oceania, and internationally. The company was incorporated in 1931 and is headquartered in Tokyo, Japan.