Bridgestone (OTCMKTS:BRDCY – Get Free Report) and Ford Motor (NYSE:F – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Bridgestone and Ford Motor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bridgestone | $29.63 billion | 1.09 | $2.19 billion | $0.64 | 18.91 |
| Ford Motor | $187.27 billion | 0.30 | -$8.18 billion | ($1.87) | -7.42 |
Volatility and Risk
Bridgestone has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Bridgestone and Ford Motor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bridgestone | 0 | 3 | 0 | 2 | 2.80 |
| Ford Motor | 1 | 10 | 8 | 0 | 2.37 |
Ford Motor has a consensus price target of $15.68, suggesting a potential upside of 12.91%. Given Ford Motor’s higher possible upside, analysts plainly believe Ford Motor is more favorable than Bridgestone.
Profitability
This table compares Bridgestone and Ford 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 |
| Ford Motor | -3.93% | 17.23% | 2.33% |
Dividends
Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.8%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Bridgestone pays out 34.4% of its earnings in the form of a dividend. Ford Motor pays out -32.1% 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. Ford Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
58.7% of Ford Motor shares are owned by institutional investors. 57.1% of Bridgestone shares are owned by company insiders. Comparatively, 0.6% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Ford Motor beats Bridgestone on 9 of the 17 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 Ford Motor
Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.
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