Tesla (NASDAQ:TSLA – Get Free Report) and Bridgestone (OTCMKTS:BRDCY – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Profitability
This table compares Tesla and Bridgestone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tesla | 3.67% | 3.82% | 2.27% |
| Bridgestone | N/A | N/A | N/A |
Volatility and Risk
Tesla has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tesla | 5 | 17 | 23 | 1 | 2.43 |
| Bridgestone | 0 | 4 | 0 | 0 | 2.00 |
Tesla presently has a consensus price target of $412.33, suggesting a potential upside of 9.89%. Given Tesla’s stronger consensus rating and higher possible upside, analysts plainly believe Tesla is more favorable than Bridgestone.
Earnings & Valuation
This table compares Tesla and Bridgestone”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tesla | $94.83 billion | 15.63 | $3.79 billion | $1.08 | 347.44 |
| Bridgestone | $29.63 billion | 1.08 | $2.19 billion | $0.64 | 19.41 |
Tesla has higher revenue and earnings than Bridgestone. Bridgestone is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
66.2% of Tesla shares are held by institutional investors. 19.9% of Tesla shares are held by insiders. Comparatively, 57.1% of Bridgestone shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Tesla beats Bridgestone on 13 of the 14 factors compared between the two stocks.
About Tesla
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
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.
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