Financial Contrast: NIO (NYSE:NIO) vs. Bridgestone (OTCMKTS:BRDCY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NIO	-34.71%	-589.46%	-23.54%
Bridgestone	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NIO and Bridgestone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	4	0	2.15
Bridgestone	0	0	0	1	4.00

NIO presently has a consensus target price of $6.35, indicating a potential downside of 6.82%. Given NIO’s higher possible upside, equities research analysts clearly believe NIO is more favorable than Bridgestone.

Institutional and Insider Ownership

48.6% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Comparatively, 57.1% of Bridgestone shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$9.01 billion	1.58	-$3.06 billion	($1.60)	-4.26
Bridgestone	$29.30 billion	1.04	$1.88 billion	N/A	N/A

Bridgestone has higher revenue and earnings than NIO.

Risk & Volatility

NIO has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Summary

Bridgestone beats NIO on 8 of the 13 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

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.