Subaru (OTCMKTS:FUJHY) and Bridgestone (OTCMKTS:BRDCY) Head-To-Head Analysis

Subaru (OTCMKTS:FUJHY) and Bridgestone (OTCMKTS:BRDCY) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	0	0	1.50
Bridgestone	0	3	0	2	2.80

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.8%. Subaru pays out 55.0% of its earnings in the form of a dividend. Bridgestone pays out 34.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Subaru has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Subaru shares are owned by institutional investors. 57.1% of Bridgestone shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Subaru and Bridgestone”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$31.79 billion	0.37	$599.56 million	$0.40	20.57
Bridgestone	$29.63 billion	1.07	$2.19 billion	$0.64	18.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Subaru	1.77%	3.04%	1.58%
Bridgestone	N/A	N/A	N/A

Summary

Bridgestone beats Subaru on 8 of the 15 factors compared between the two stocks.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.

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.