Reviewing Michelin (OTCMKTS:MGDDY) & Amerityre (OTCMKTS:AMTY)

Michelin (OTCMKTS:MGDDY) and Amerityre (OTCMKTS:AMTY) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Michelin and Amerityre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Michelin	N/A	N/A	N/A
Amerityre	6.50%	13.35%	10.72%

Institutional & Insider Ownership

3.3% of Michelin shares are owned by institutional investors. Comparatively, 0.3% of Amerityre shares are owned by institutional investors. 19.7% of Amerityre shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Michelin and Amerityre”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Michelin	$29.43 billion	0.88	$2.05 billion	N/A	N/A
Amerityre	$5.00 million	0.51	$670,000.00	N/A	N/A

Michelin has higher revenue and earnings than Amerityre.

Analyst Recommendations

This is a summary of recent recommendations for Michelin and Amerityre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Michelin	0	2	0	2	3.00
Amerityre	0	0	0	0	0.00

Volatility and Risk

Michelin has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Amerityre has a beta of -1.37, meaning that its share price is 237% less volatile than the S&P 500.

Summary

Michelin beats Amerityre on 7 of the 11 factors compared between the two stocks.

About Michelin

Compagnie Générale des Établissements Michelin SCA engages in the manufacture, distribution and sale of tires. Its products and services include tires, mobility services, lifestyle products, Michelin solutions and Michelin engineering and services. The company operates through the following segments: Passenger car and Light truck tires and related distribution, Truck tires and related distribution, and Specialty businesses. The company was founded by Aristide Barbier and Édouard Daubrée on July 15, 1863 and is headquartered in Clermont-Ferrand, France.

About Amerityre

Amerityre Corporation engages in the research and development, manufacture, and sale of polyurethane tires in the United States. The company provides closed-cell polyurethane foam tires for bicycles, golf and baggage carts, hand trucks, lawn and garden equipment, wheelbarrows, personnel carriers, and medical mobility products, as well as custom designed applications; polyurethane elastomer industrial tires for forklifts and scissor lifts; agricultural tires, including seeder tires and hay baler tires, as well as flat-free pivot tires that are used in irrigation systems; and specialty tires and tire-wheel assemblies. It serves original equipment manufacturers of lawn and garden, agricultural, and mobility and outdoor power equipment; regional tire distributors; retail cooperatives; agricultural tire distributors; and retailers of lawn and garden tires, bicycle tires, and hand truck tires. The company was formerly known as American Tire Corporation and changed its name to Amerityre Corporation in December 1999. Amerityre Corporation was incorporated in 1995 and is headquartered in Boulder City, Nevada.