Michelin (OTCMKTS:MGDDY) & Goodyear Tire & Rubber (NASDAQ:GT) Head to Head Contrast

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

Institutional & Insider Ownership

3.3% of Michelin shares are held by institutional investors. Comparatively, 84.2% of Goodyear Tire & Rubber shares are held by institutional investors. 1.7% of Goodyear Tire & Rubber shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Michelin has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Michelin and Goodyear Tire & Rubber, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Michelin	0	3	0	2	2.80
Goodyear Tire & Rubber	0	1	4	2	3.14

Goodyear Tire & Rubber has a consensus price target of $14.20, indicating a potential upside of 33.08%. Given Goodyear Tire & Rubber’s stronger consensus rating and higher possible upside, analysts plainly believe Goodyear Tire & Rubber is more favorable than Michelin.

Profitability

This table compares Michelin and Goodyear Tire & Rubber’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
Goodyear Tire & Rubber	1.30%	5.31%	1.20%

Dividends

Michelin pays an annual dividend of $0.51 per share and has a dividend yield of 2.7%. Goodyear Tire & Rubber pays an annual dividend of $0.64 per share and has a dividend yield of 6.0%. Goodyear Tire & Rubber pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Michelin 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
Michelin	$29.43 billion	0.89	$2.04 billion	N/A	N/A
Goodyear Tire & Rubber	$18.59 billion	0.16	$70.00 million	$0.84	12.70

Michelin has higher revenue and earnings than Goodyear Tire & Rubber.

Summary

Goodyear Tire & Rubber beats Michelin on 10 of the 14 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 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.