Head-To-Head Review: Bridgestone (OTCMKTS:BRDCY) and Mazda Motor (OTCMKTS:MZDAY)

Bridgestone (OTCMKTS:BRDCY) and Mazda Motor (OTCMKTS:MZDAY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.8%. Mazda Motor pays an annual dividend of $0.11 per share and has a dividend yield of 3.3%. Bridgestone pays out 34.4% of its earnings in the form of a dividend. Mazda Motor pays out 20.4% 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 Bridgestone and Mazda 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
Mazda Motor	2.06%	9.13%	3.96%

Analyst Ratings

This is a summary of current recommendations for Bridgestone and Mazda Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	4	0	0	2.00
Mazda Motor	0	3	0	0	2.00

Earnings & Valuation

This table compares Bridgestone and Mazda Motor”s gross revenue, earnings per share (EPS) 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	19.52
Mazda Motor	$32.67 billion	0.13	$231.57 million	$0.54	6.20

Bridgestone has higher earnings, but lower revenue 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.

Volatility & Risk

Bridgestone has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Mazda Motor has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Mazda Motor beats Bridgestone on 7 of the 11 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 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.