Comparing Mercedes-Benz Group (OTCMKTS:MBGYY) and Bridgestone (OTCMKTS:BRDCY)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bridgestone and Mercedes-Benz Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	1	0	0	1	2.50
Mercedes-Benz Group	0	2	0	3	3.20

Dividends

Bridgestone pays an annual dividend of $0.24 per share and has a dividend yield of 2.0%. Mercedes-Benz Group pays an annual dividend of C$0.81 per share and has a dividend yield of 4.8%. Bridgestone pays out 35.3% of its earnings in the form of a dividend. Mercedes-Benz Group pays out 25.7% 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. Mercedes-Benz Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Bridgestone and Mercedes-Benz Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.30 billion	1.10	$1.88 billion	$0.68	17.84
Mercedes-Benz Group	$157.56 billion	0.41	$11.05 billion	C$3.15	5.33

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

Profitability

This table compares Bridgestone and Mercedes-Benz Group’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
Mercedes-Benz Group	4.51%	6.59%	2.37%

Volatility and Risk

Bridgestone has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Summary

Mercedes-Benz Group beats Bridgestone on 11 of the 13 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 Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.