Critical Analysis: Bridgestone (OTCMKTS:BRDCY) and BYD (OTCMKTS:BYDDY)

Institutional and Insider Ownership

0.0% of BYD shares are held by institutional investors. 57.1% of Bridgestone shares are held by company 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.

Dividends

Bridgestone pays an annual dividend of $0.21 per share and has a dividend yield of 0.9%. BYD pays an annual dividend of $0.15 per share and has a dividend yield of 1.1%. BYD pays out 21.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Bridgestone and BYD”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.30 billion	1.06	$1.88 billion	N/A	N/A
BYD	$108.10 billion	1.16	$5.60 billion	$0.71	19.77

BYD has higher revenue and earnings than Bridgestone.

Profitability

This table compares Bridgestone and BYD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgestone	N/A	N/A	N/A
BYD	5.71%	22.70%	5.86%

Volatility and Risk

Bridgestone has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, BYD has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.

Summary

BYD beats Bridgestone on 8 of the 11 factors compared between the two stocks.

About Bridgestone

Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company offers tires and tire tubes for passenger cars, trucks, buses, construction and off-road mining vehicles, industrial and agricultural machinery, aircraft, motorcycles, scooters, and other vehicles; automotive parts; automotive maintenance and repair services; and raw materials for tires and other products. It also provides chemical products, such as belts, hoses, rubber crawlers/MT pads, resin piping systems, seismic isolation rubbers, bridge rubber bearings, and block type rubber covered chain type bridge fall prevention devices. In addition, the company offers golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others; and finance and other services. It has operations in Japan, the Americas, Europe, Russia, the Middle East, India, Africa, China, Asia, Oceania, Oceania, and internationally. The company was incorporated in 1931 and is headquartered in Tokyo, Japan.

About BYD

BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.