Contrasting Goodyear Tire & Rubber (GT) and Its Peers

Goodyear Tire & Rubber (NASDAQ:GT) is one of 147 public companies in the “Automobile Components” industry, but how does it compare to its rivals? We will compare Goodyear Tire & Rubber to related companies based on the strength of its risk, earnings, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Automobile Components” companies are owned by institutional investors. 0.5% of Goodyear Tire & Rubber shares are owned by company insiders. Comparatively, 19.9% of shares of all “Automobile Components” companies are owned 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Goodyear Tire & Rubber and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goodyear Tire & Rubber	2	3	2	0	2.00
Goodyear Tire & Rubber Competitors	1040	4393	6046	199	2.46

Goodyear Tire & Rubber presently has a consensus target price of $8.26, indicating a potential upside of 43.65%. As a group, “Automobile Components” companies have a potential upside of 65.76%. Given Goodyear Tire & Rubber’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Goodyear Tire & Rubber has less favorable growth aspects than its rivals.

Profitability

This table compares Goodyear Tire & Rubber and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goodyear Tire & Rubber	-14.37%	-2.95%	-0.50%
Goodyear Tire & Rubber Competitors	-168.62%	-15.56%	-2.00%

Volatility & Risk

Goodyear Tire & Rubber has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber’s rivals have a beta of 3.66, indicating that their average stock price is 266% more volatile than the S&P 500.

Earnings & Valuation

This table compares Goodyear Tire & Rubber and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Goodyear Tire & Rubber	$18.28 billion	-$1.72 billion	-0.65
Goodyear Tire & Rubber Competitors	$6.59 billion	$71.79 million	6.27

Goodyear Tire & Rubber has higher revenue, but lower earnings than its rivals. Goodyear Tire & Rubber is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Goodyear Tire & Rubber rivals beat Goodyear Tire & Rubber on 8 of the 13 factors compared.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Co. engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America. The Europe, Middle East, and Africa segment focuses on the development, manufacture, distribution, and sale of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving, mining, and industrial equipment throughout Europe, the Middle East, and Africa. The Asia Pacific segment refers to the development, manufacture, distribution, and sales of tires for automobiles, trucks, buses, aircraft, farm, earthmoving, mining, and industrial equipment throughout the Asia Pacific region. The company was founded by Frank A. Seiberling on August 29, 1898 and is headquartered in Akron, OH.