Head to Head Analysis: Bridgestone (OTCMKTS:BRDCY) versus BYD (OTCMKTS:BYDDF)

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

Risk and Volatility

BYD has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for BYD and Bridgestone, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BYD	0	0	1	0	3.00
Bridgestone	1	0	0	1	2.50

BYD currently has a consensus price target of $85.00, suggesting a potential upside of 562.77%. Given BYD’s stronger consensus rating and higher probable upside, equities analysts plainly believe BYD is more favorable than Bridgestone.

Valuation & Earnings

This table compares BYD and Bridgestone”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BYD	$108.10 billion	N/A	$5.60 billion	$0.71	18.06
Bridgestone	$29.30 billion	1.09	$1.88 billion	$0.68	16.47

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

Profitability

This table compares BYD and Bridgestone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BYD	N/A	N/A	N/A
Bridgestone	N/A	N/A	N/A

Summary

BYD beats Bridgestone on 7 of the 9 factors compared between the two stocks.

About BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.

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.