Analyzing Bridgestone (OTCMKTS:BRDCY) & Suzuki Motor (OTCMKTS:SZKMY)

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

Dividends

Suzuki Motor pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. Bridgestone pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Suzuki Motor pays out 13.4% of its earnings in the form of a dividend. Bridgestone pays out 16.2% 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. Suzuki Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Suzuki Motor	6.78%	10.69%	6.67%
Bridgestone	N/A	N/A	N/A

Institutional and Insider Ownership

0.0% of Suzuki Motor shares are owned by institutional investors. 57.1% of Bridgestone shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Suzuki Motor 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
Suzuki Motor	$38.25 billion	0.61	$2.75 billion	$5.69	8.44
Bridgestone	$29.63 billion	0.92	$2.19 billion	$0.68	15.04

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

Volatility & Risk

Suzuki Motor has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Suzuki Motor and Bridgestone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzuki Motor	0	1	1	1	3.00
Bridgestone	0	2	0	1	2.67

Summary

Suzuki Motor beats Bridgestone on 11 of the 15 factors compared between the two stocks.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, 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.