Head-To-Head Analysis: Goodyear Tire & Rubber (GT) & Its Competitors

Goodyear Tire & Rubber (NASDAQ:GT) is one of 147 public companies in the “Automobile Components” industry, but how does it weigh in compared to its peers? We will compare Goodyear Tire & Rubber to related businesses based on the strength of its institutional ownership, earnings, profitability, dividends, risk, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Goodyear Tire & Rubber	-14.37%	-2.95%	-0.50%
Goodyear Tire & Rubber Competitors	-168.61%	-15.57%	-2.00%

Valuation & Earnings

This table compares Goodyear Tire & Rubber and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Goodyear Tire & Rubber	$18.28 billion	-$1.72 billion	-0.68
Goodyear Tire & Rubber Competitors	$6.63 billion	$71.76 million	6.33

Goodyear Tire & Rubber has higher revenue, but lower earnings than its peers. Goodyear Tire & Rubber is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are held by institutional investors. Comparatively, 48.8% of shares of all “Automobile Components” companies are held by institutional investors. 0.5% of Goodyear Tire & Rubber shares are held by company insiders. Comparatively, 19.9% of shares of all “Automobile Components” companies are held 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.

Analyst Recommendations

This is a summary of recent ratings for Goodyear Tire & Rubber and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goodyear Tire & Rubber	2	3	2	0	2.00
Goodyear Tire & Rubber Competitors	1035	4388	6036	197	2.46

Goodyear Tire & Rubber currently has a consensus target price of $8.26, indicating a potential upside of 37.67%. As a group, “Automobile Components” companies have a potential upside of 66.91%. Given Goodyear Tire & Rubber’s peers stronger consensus rating and higher probable upside, analysts clearly believe Goodyear Tire & Rubber has less favorable growth aspects than its peers.

Volatility and Risk

Goodyear Tire & Rubber has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber’s peers have a beta of 3.68, meaning that their average share price is 268% more volatile than the S&P 500.

Summary

Goodyear Tire & Rubber peers beat Goodyear Tire & Rubber on 8 of the 13 factors compared.

Goodyear Tire & Rubber Company Profile

Goodyear Tire & Rubber Co. engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America. The Europe, Middle East, and Africa segment focuses on the development, manufacture, distribution, and sale of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving, mining, and industrial equipment throughout Europe, the Middle East, and Africa. The Asia Pacific segment refers to the development, manufacture, distribution, and sales of tires for automobiles, trucks, buses, aircraft, farm, earthmoving, mining, and industrial equipment throughout the Asia Pacific region. The company was founded by Frank A. Seiberling on August 29, 1898 and is headquartered in Akron, OH.