Contrasting Bridgestone (BRDCY) & Its Competitors

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Bridgestone and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	3	0	2	2.80
Bridgestone Competitors	2047	5044	6310	188	2.34

As a group, “Automobiles” companies have a potential upside of 72.19%. Given Bridgestone’s peers higher possible upside, analysts plainly believe Bridgestone has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Bridgestone and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bridgestone	$29.63 billion	$2.19 billion	20.19
Bridgestone Competitors	$1,483.21 billion	$1.13 billion	6.84

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

Profitability

This table compares Bridgestone and its peers’ 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	-1,522.48%	-126.76%	-11.69%

Volatility and Risk

Bridgestone has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Bridgestone’s peers 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 $0.21 per share and has a dividend yield of 1.6%. Bridgestone pays out 32.8% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 147.3% and pay out 7.2% of their earnings in the form of a dividend. Bridgestone lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

39.1% of shares of all “Automobiles” companies are owned by institutional investors. 57.1% of Bridgestone shares are owned by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

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

Bridgestone Company Profile

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.