Critical Analysis: Goodyear Tire & Rubber (GT) & Its Peers

Goodyear Tire & Rubber (NASDAQ:GT) is one of 148 public companies in the “Automobile Components” industry, but how does it compare to its rivals? We will compare Goodyear Tire & Rubber to related businesses based on the strength of its analyst recommendations, valuation, profitability, dividends, institutional ownership, earnings and risk.

Insider & Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. Comparatively, 48.3% of shares of all “Automobile Components” companies are owned by institutional investors. 0.5% of Goodyear Tire & Rubber shares are owned by company insiders. Comparatively, 19.7% of shares of all “Automobile Components” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Goodyear Tire & Rubber and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goodyear Tire & Rubber	-14.37%	-2.95%	-0.50%
Goodyear Tire & Rubber Competitors	-168.62%	-15.56%	-2.00%

Analyst Recommendations

This is a summary of recent ratings and price targets for Goodyear Tire & Rubber and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goodyear Tire & Rubber	2	3	2	0	2.00
Goodyear Tire & Rubber Competitors	1053	4397	6048	201	2.46

Goodyear Tire & Rubber currently has a consensus price target of $8.26, suggesting a potential upside of 53.82%. As a group, “Automobile Components” companies have a potential upside of 65.26%. Given Goodyear Tire & Rubber’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Goodyear Tire & Rubber has less favorable growth aspects than its rivals.

Risk and Volatility

Goodyear Tire & Rubber has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber’s rivals have a beta of 3.61, indicating that their average share price is 261% more volatile than the S&P 500.

Earnings & Valuation

This table compares Goodyear Tire & Rubber and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Goodyear Tire & Rubber	$18.28 billion	-$1.72 billion	-0.61
Goodyear Tire & Rubber Competitors	$6.54 billion	$70.54 million	6.20

Goodyear Tire & Rubber has higher revenue, but lower earnings than its rivals. Goodyear Tire & Rubber is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Goodyear Tire & Rubber rivals beat Goodyear Tire & Rubber on 8 of the 13 factors compared.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Co. engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America. The Europe, Middle East, and Africa segment focuses on the development, manufacture, distribution, and sale of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving, mining, and industrial equipment throughout Europe, the Middle East, and Africa. The Asia Pacific segment refers to the development, manufacture, distribution, and sales of tires for automobiles, trucks, buses, aircraft, farm, earthmoving, mining, and industrial equipment throughout the Asia Pacific region. The company was founded by Frank A. Seiberling on August 29, 1898 and is headquartered in Akron, OH.