Reviewing Bridgestone (OTCMKTS:BRDCY) & Niu Technologies (NASDAQ:NIU)

Niu Technologies (NASDAQ:NIU) and Bridgestone (OTCMKTS:BRDCY) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Risk & Volatility

Niu Technologies has a beta of -0.31, meaning that its share price is 131% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Earnings and Valuation

This table compares Niu Technologies and Bridgestone”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Niu Technologies	$4.72 billion	0.03	-$5.63 million	($0.38)	-4.76
Bridgestone	$29.63 billion	1.14	$2.19 billion	$0.64	20.36

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Niu Technologies and Bridgestone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Niu Technologies	1	1	0	0	1.50
Bridgestone	0	4	0	0	2.00

Niu Technologies currently has a consensus target price of $3.50, indicating a potential upside of 93.37%. Given Niu Technologies’ higher probable upside, equities analysts clearly believe Niu Technologies is more favorable than Bridgestone.

Profitability

This table compares Niu Technologies and Bridgestone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Niu Technologies	-4.39%	-24.20%	-6.38%
Bridgestone	N/A	N/A	N/A

Institutional and Insider Ownership

75.1% of Niu Technologies shares are held by institutional investors. 10.2% of Niu Technologies shares are held by company insiders. Comparatively, 57.1% of Bridgestone shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Bridgestone beats Niu Technologies on 11 of the 13 factors compared between the two stocks.

About Niu Technologies

Niu Technologies designs, manufactures, and sells electric scooters in the People’s Republic of China, Europe, and internationally. The company offers RQi, NQi, MQi, SQi, UQi, F, and Gova series smart electric scooters, motorcycles, mopeds, and bicycles; KQi series kick-scooters; BQi series e-bikes; and Niu Aero Sports Bicycles. It also provides accessories and spare parts under the NIU brand name comprising scooter accessories, such as raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, and locks; lifestyle accessories, which includes T-shirts, coats, jeans, hats, bags, jewelry, notebooks, badges, key chain, and mugs; and performance upgrade components consisting of upgraded wheels, shock absorbers, brake calipers, and carbon fiber body panels. In addition, the company operates NIU app, which provides online repair request, service station locator, theft reporting, smart check, smart services, scooter status, historical riding data, and key diagnostics, as well as NIU cover, which provides insurance services. It sells and services its products through city partners and franchised stores, distributors, third-party e-commerce platforms, and its online store. The company was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China.

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.