Contrasting Bridgestone (BRDCY) and The Competition

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

Analyst Ratings

This is a summary of recent ratings and target prices for Bridgestone and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	3	0	2	2.80
Bridgestone Competitors	2043	5040	6309	188	2.34

As a group, “Automobiles” companies have a potential upside of 71.66%. Given Bridgestone’s rivals higher probable upside, analysts clearly believe Bridgestone has less favorable growth aspects than its rivals.

Profitability

This table compares Bridgestone and its rivals’ 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	-1,522.64%	-127.01%	-11.73%

Institutional and Insider Ownership

38.5% of shares of all “Automobiles” companies are held by institutional investors. 57.1% of Bridgestone shares are held by company insiders. Comparatively, 14.3% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Bridgestone and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bridgestone	$29.63 billion	$2.19 billion	20.28
Bridgestone Competitors	$53.34 billion	$1.13 billion	6.72

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

Risk and Volatility

Bridgestone has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Bridgestone’s rivals have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Dividends

Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.7%. Bridgestone pays out 34.4% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 148.7% and pay out 7.2% of their earnings in the form of a dividend. Bridgestone lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

About Bridgestone

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.