American Axle & Manufacturing (NYSE:DCH – Get Free Report) and Goodyear Tire & Rubber (NASDAQ:GT – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Valuation and Earnings
This table compares American Axle & Manufacturing and Goodyear Tire & Rubber”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $5.84 billion | 0.28 | -$19.70 million | ($1.08) | -6.46 |
| Goodyear Tire & Rubber | $18.28 billion | 0.10 | -$1.72 billion | ($8.83) | -0.71 |
Insider and Institutional Ownership
91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by insiders. Comparatively, 0.5% of Goodyear Tire & Rubber shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
American Axle & Manufacturing has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Profitability
This table compares American Axle & Manufacturing and Goodyear Tire & Rubber’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
| Goodyear Tire & Rubber | -14.37% | -2.95% | -0.50% |
Analyst Recommendations
This is a summary of current ratings and price targets for American Axle & Manufacturing and Goodyear Tire & Rubber, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 5 | 3 | 0 | 2.22 |
| Goodyear Tire & Rubber | 2 | 3 | 2 | 0 | 2.00 |
American Axle & Manufacturing presently has a consensus price target of $9.71, indicating a potential upside of 39.17%. Goodyear Tire & Rubber has a consensus price target of $8.26, indicating a potential upside of 32.16%. Given American Axle & Manufacturing’s stronger consensus rating and higher probable upside, research analysts clearly believe American Axle & Manufacturing is more favorable than Goodyear Tire & Rubber.
Summary
American Axle & Manufacturing beats Goodyear Tire & Rubber on 12 of the 14 factors compared between the two stocks.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.
About Goodyear Tire & Rubber
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.
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