Comparing Bridgestone (BRDCY) and Its Peers

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

Valuation and Earnings

This table compares Bridgestone and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bridgestone	$29.63 billion	$2.19 billion	20.05
Bridgestone Competitors	$1,479.65 billion	$1.13 billion	6.85

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

Risk and Volatility

Bridgestone has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Bridgestone’s competitors have a beta of 0.96, meaning that their average stock 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 145.5% and pay out 7.2% of their earnings in the form of a dividend. Bridgestone lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

39.1% of shares of all “Automobiles” companies are held by institutional investors. 57.1% of Bridgestone shares are held by insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Bridgestone and its competitors’ 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	-1,522.54%	-126.86%	-11.74%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Bridgestone and its competitors, 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	2052	5047	6310	188	2.34

As a group, “Automobiles” companies have a potential upside of 72.03%. Given Bridgestone’s competitors higher possible upside, analysts plainly believe Bridgestone has less favorable growth aspects than its competitors.

Summary

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

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.