Cooper Tire & Rubber (NYSE: CTB) and Bridgestone (OTCMKTS:BRDCY) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

0.2% of Bridgestone shares are owned by institutional investors. 1.7% of Cooper Tire & Rubber shares are owned by company insiders. Comparatively, 57.1% of Bridgestone shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cooper Tire & Rubber and Bridgestone’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cooper Tire & Rubber $2.85 billion 0.49 $95.40 million $3.10 8.94
Bridgestone $32.50 billion 0.86 $2.57 billion $1.56 11.80

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cooper Tire & Rubber and Bridgestone, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cooper Tire & Rubber 0 3 5 0 2.63
Bridgestone 0 0 0 0 N/A

Cooper Tire & Rubber currently has a consensus price target of $42.14, suggesting a potential upside of 51.32%. Given Cooper Tire & Rubber’s higher probable upside, equities analysts plainly believe Cooper Tire & Rubber is more favorable than Bridgestone.

Dividends

Cooper Tire & Rubber pays an annual dividend of $0.42 per share and has a dividend yield of 1.5%. Bridgestone pays an annual dividend of $0.29 per share and has a dividend yield of 1.6%. Cooper Tire & Rubber pays out 13.5% of its earnings in the form of a dividend. Bridgestone pays out 18.6% 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.

Profitability

This table compares Cooper Tire & Rubber and Bridgestone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cooper Tire & Rubber 2.60% 11.73% 5.31%
Bridgestone 8.00% 11.35% 6.93%

Volatility and Risk

Cooper Tire & Rubber has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Bridgestone beats Cooper Tire & Rubber on 9 of the 15 factors compared between the two stocks.

About Cooper Tire & Rubber

Cooper Tire & Rubber Company, together with its subsidiaries, designs, manufactures, and markets replacement tires in North America, Latin America, Europe, and Asia. The company operates through Americas Tire Operations and International Tire Operations segments. It manufactures and markets passenger car, light truck, motorcycle, and racing tires, as well as tire retread material; and distributes tires for racing, medium trucks, and motorcycles. The company sells its products to independent tire dealers, wholesale distributors, regional and national retail tire chains, and other tire and automotive product retail chains, as well as original equipment manufacturers; and directly to end users through three owned retail stores. Cooper Tire & Rubber Company was founded in 1913 and is headquartered in Findlay, Ohio.

About Bridgestone

Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products worldwide. The company provides tires and tire tubes for passenger cars, trucks, buses, construction/mining vehicles, industrial machines, agricultural machines, aircraft, and motorcycles and scooters; and tire related products, retread materials and services, tire raw materials, and automotive maintenance and repair services. It also offers vehicle parts, polyurethane foam and related products, electronic precision parts, industrial materials related products, civil engineering and construction materials and equipment, and other products; commercial roofing and other materials; golf balls, golf clubs, other sports products; and bicycles, bicycle related and other products, as well as finance and other services. The company was founded in 1931 and is headquartered in Tokyo, Japan.

Receive News & Ratings for Cooper Tire & Rubber Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cooper Tire & Rubber and related companies with MarketBeat.com's FREE daily email newsletter.