Financial Review: Bridgestone (OTCMKTS:BRDCY) and Suzuki Motor (OTCMKTS:SZKMY)

Bridgestone (OTCMKTS:BRDCY) and Suzuki Motor (OTCMKTS:SZKMY) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Dividends

Bridgestone pays an annual dividend of $0.21 per share and has a dividend yield of 2.1%. Suzuki Motor pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. Bridgestone pays out 30.9% of its earnings in the form of a dividend. Suzuki Motor pays out 13.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Bridgestone and Suzuki Motor’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
Suzuki Motor	6.78%	10.69%	6.67%

Valuation and Earnings

This table compares Bridgestone and Suzuki Motor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.63 billion	0.91	$2.19 billion	$0.68	14.88
Suzuki Motor	$38.25 billion	0.60	$2.75 billion	$5.69	8.31

Suzuki Motor has higher revenue and earnings than Bridgestone. Suzuki Motor is trading at a lower price-to-earnings ratio than Bridgestone, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bridgestone has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Suzuki Motor has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bridgestone and Suzuki Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	2	0	1	2.67
Suzuki Motor	0	1	1	1	3.00

Insider & Institutional Ownership

0.0% of Suzuki Motor shares are owned by institutional investors. 57.1% of Bridgestone 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.

Summary

Suzuki Motor beats Bridgestone on 10 of the 15 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 Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.