Financial Analysis: Goodyear Tire & Rubber (GT) versus Its Competitors

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

Insider and Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Automobile Components” companies are owned by institutional investors. 0.5% of Goodyear Tire & Rubber shares are owned by company insiders. Comparatively, 19.9% of shares of all “Automobile Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Goodyear Tire & Rubber and its competitors’ 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%

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Goodyear Tire & Rubber and its competitors, 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 price target of $8.26, indicating a potential upside of 38.36%. As a group, “Automobile Components” companies have a potential upside of 65.12%. Given Goodyear Tire & Rubber’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Goodyear Tire & Rubber has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Goodyear Tire & Rubber and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Goodyear Tire & Rubber	$18.28 billion	-$1.72 billion	-0.68
Goodyear Tire & Rubber Competitors	$7.78 billion	$71.76 million	6.61

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

Summary

Goodyear Tire & Rubber competitors 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.