Financial Analysis: Goodyear Tire & Rubber (NASDAQ:GT) vs. Carbon Streaming (OTCMKTS:OFSTF)

Goodyear Tire & Rubber (NASDAQ:GT) and Carbon Streaming (OTCMKTS:OFSTF) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk and Volatility

Goodyear Tire & Rubber has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Carbon Streaming has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. 0.5% of Goodyear Tire & Rubber shares are owned by insiders. Comparatively, 2.4% of Carbon Streaming 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.

Profitability

This table compares Goodyear Tire & Rubber and Carbon Streaming’s 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%
Carbon Streaming	-8,270.00%	-7.74%	-7.44%

Analyst Recommendations

This is a breakdown of current ratings for Goodyear Tire & Rubber and Carbon Streaming, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goodyear Tire & Rubber	2	3	2	0	2.00
Carbon Streaming	0	0	0	0	0.00

Goodyear Tire & Rubber currently has a consensus target price of $8.26, indicating a potential upside of 33.98%. Given Goodyear Tire & Rubber’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Goodyear Tire & Rubber is more favorable than Carbon Streaming.

Earnings and Valuation

This table compares Goodyear Tire & Rubber and Carbon Streaming”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goodyear Tire & Rubber	$17.69 billion	0.10	-$1.72 billion	($8.83)	-0.70
Carbon Streaming	$30,000.00	1,069.02	-$2.48 million	($0.04)	-16.34

Carbon Streaming has lower revenue, but higher earnings than Goodyear Tire & Rubber. Carbon Streaming is trading at a lower price-to-earnings ratio than Goodyear Tire & Rubber, indicating that it is currently the more affordable of the two stocks.

Summary

Goodyear Tire & Rubber beats Carbon Streaming on 10 of the 14 factors compared between the two stocks.

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.

About Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.