Mazda Motor (OTCMKTS:MZDAY – Get Free Report) and Bridgestone (OTCMKTS:BRDCY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Mazda Motor and Bridgestone, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mazda Motor | 0 | 3 | 0 | 0 | 2.00 |
| Bridgestone | 0 | 4 | 0 | 0 | 2.00 |
Volatility and Risk
Mazda Motor has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Earnings and Valuation
This table compares Mazda Motor and Bridgestone”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mazda Motor | $32.67 billion | 0.13 | $231.57 million | $0.54 | 6.20 |
| Bridgestone | $29.63 billion | 1.09 | $2.19 billion | $0.64 | 19.52 |
Bridgestone has lower revenue, but higher earnings than Mazda Motor. Mazda Motor is trading at a lower price-to-earnings ratio than Bridgestone, indicating that it is currently the more affordable of the two stocks.
Dividends
Mazda Motor pays an annual dividend of $0.11 per share and has a dividend yield of 3.3%. Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.8%. Mazda Motor pays out 20.4% of its earnings in the form of a dividend. Bridgestone pays out 34.4% 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. Mazda Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Mazda Motor and Bridgestone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mazda Motor | 2.06% | 9.13% | 3.96% |
| Bridgestone | N/A | N/A | N/A |
Summary
Mazda Motor beats Bridgestone on 7 of the 11 factors compared between the two stocks.
About Mazda Motor
Mazda Motor Corporation engages in the manufacture and sale of passenger cars and commercial vehicles in Japan, China, North America, Europe, and internationally. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was incorporated in 1920 and is headquartered in Hiroshima, Japan.
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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