Goodyear Tire & Rubber (GT) versus Its Competitors Head to Head Survey

by · The Markets Daily

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

Institutional & Insider 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 insiders. Comparatively, 19.9% of shares of all “Automobile Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Goodyear Tire & Rubber and its competitors, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Goodyear Tire & Rubber23202.00
Goodyear Tire & Rubber Competitors1039439160451992.46

Goodyear Tire & Rubber presently has a consensus price target of $8.26, indicating a potential upside of 32.16%. As a group, “Automobile Components” companies have a potential upside of 61.51%. Given Goodyear Tire & Rubber’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Goodyear Tire & Rubber has less favorable growth aspects than its competitors.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Goodyear Tire & Rubber-14.37%-2.95%-0.50%
Goodyear Tire & Rubber Competitors-168.62%-15.57%-2.00%

Dividends

Goodyear Tire & Rubber pays an annual dividend of $0.64 per share and has a dividend yield of 10.2%. Goodyear Tire & Rubber pays out -7.2% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 9.9% and pay out 24.5% of their earnings in the form of a dividend. Goodyear Tire & Rubber is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Risk & Volatility

Goodyear Tire & Rubber has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber’s competitors have a beta of 3.65, suggesting that their average stock price is 265% more volatile than the S&P 500.

Valuation & Earnings

This table compares Goodyear Tire & Rubber and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Goodyear Tire & Rubber$17.69 billion-$1.72 billion-0.71
Goodyear Tire & Rubber Competitors$7.77 billion$71.79 million6.53

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 15 factors compared.

About Goodyear Tire & Rubber

(Get Free Report)

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.