Critical Analysis: Bayerische Motoren Werke (OTCMKTS:BAMXF) vs. Bridgestone (OTCMKTS:BRDCY)

Bridgestone (OTCMKTS:BRDCY) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility and Risk

Bridgestone has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bridgestone and Bayerische Motoren Werke”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.63 billion	0.92	$2.19 billion	$0.68	15.04
Bayerische Motoren Werke	$150.95 billion	0.35	$8.25 billion	$13.39	6.82

Bayerische Motoren Werke has higher revenue and earnings than Bridgestone. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than Bridgestone, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bridgestone and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgestone	N/A	N/A	N/A
Bayerische Motoren Werke	5.45%	7.70%	2.80%

Analyst Recommendations

This is a breakdown of current ratings for Bridgestone and Bayerische Motoren Werke, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	2	0	1	2.67
Bayerische Motoren Werke	1	3	0	1	2.20

Summary

Bayerische Motoren Werke beats Bridgestone on 7 of the 10 factors compared between the two stocks.

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.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.