Goodyear Tire & Rubber (NASDAQ:GT) and Amerityre (OTCMKTS:AMTY) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares Goodyear Tire & Rubber and Amerityre’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goodyear Tire & Rubber $15.38 billion 0.33 $346.00 million $3.12 7.05
Amerityre $3.62 million 0.25 -$30,000.00 N/A N/A

Goodyear Tire & Rubber has higher revenue and earnings than Amerityre.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goodyear Tire & Rubber 1 5 5 0 2.36
Amerityre 0 0 0 0 N/A

Goodyear Tire & Rubber presently has a consensus target price of $26.14, indicating a potential upside of 18.89%. Given Goodyear Tire & Rubber’s higher possible upside, research analysts plainly believe Goodyear Tire & Rubber is more favorable than Amerityre.

Institutional and Insider Ownership

88.8% of Goodyear Tire & Rubber shares are owned by institutional investors. Comparatively, 0.5% of Amerityre shares are owned by institutional investors. 1.5% of Goodyear Tire & Rubber shares are owned by insiders. Comparatively, 15.4% of Amerityre shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Goodyear Tire & Rubber has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Amerityre has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Goodyear Tire & Rubber 3.11% 13.84% 3.91%
Amerityre 6.05% 17.41% 11.57%

Dividends

Goodyear Tire & Rubber pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Amerityre does not pay a dividend. Goodyear Tire & Rubber pays out 20.5% of its earnings in the form of a dividend. Goodyear Tire & Rubber has raised its dividend for 4 consecutive years.

Summary

Goodyear Tire & Rubber beats Amerityre on 9 of the 14 factors compared between the two stocks.

About Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of rubber tires for automobiles, trucks, buses, aircrafts, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, as well as under the private-label brands. The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; manufactures and markets rubber-related chemicals; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services, as well as sells natural rubber products. In addition, it operates approximately 1,000 tire and auto service center outlets that offer products for retail sale. The company sells its products through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was founded in 1898 and is headquartered in Akron, Ohio.

About Amerityre

Amerityre Corporation engages in the research and development, manufacture, and sale of polyurethane tires in the United States. The company provides closed-cell polyurethane foam tires for bicycles, carts, hand trucks, lawn and garden, wheelbarrow, personnel carriers, and medical mobility products; polyurethane elastomer industrial tires for forklifts and scissor lifts; agricultural tires, including seeder tires and hay baler tires, as well as flat-free pivot tires that are used in irrigation systems; and specialty tires and tire-wheel assemblies. It serves original equipment manufacturers of lawn and garden products, and outdoor power equipment; regional tire distributors; retail cooperatives; and agricultural tire distributors and retailers of lawn and garden products, bicycle tires, and hand truck tires through independent manufacturer representatives. The company was formerly known as American Tire Corporation and changed its name to Amerityre Corporation in December 1999. Amerityre Corporation was founded in 1995 and is based in Boulder City, Nevada.

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