Reviewing Goodyear Tire & Rubber (GT) and Its Peers

Goodyear Tire & Rubber (NASDAQ:GT) is one of 147 publicly-traded companies in the “Automobile Components” industry, but how does it weigh in compared to its peers? We will compare Goodyear Tire & Rubber to related businesses based on the strength of its institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares Goodyear Tire & Rubber and its peers’ 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	-168.61%	-15.57%	-2.00%

Analyst Recommendations

This is a breakdown of recent ratings for Goodyear Tire & Rubber and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goodyear Tire & Rubber	2	3	2	0	2.00
Goodyear Tire & Rubber Competitors	1034	4387	6036	197	2.46

Goodyear Tire & Rubber currently has a consensus target price of $8.26, suggesting a potential upside of 38.36%. As a group, “Automobile Components” companies have a potential upside of 64.28%. Given Goodyear Tire & Rubber’s peers stronger consensus rating and higher probable upside, analysts clearly believe Goodyear Tire & Rubber has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Goodyear Tire & Rubber and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Goodyear Tire & Rubber	$18.28 billion	-$1.72 billion	-0.68
Goodyear Tire & Rubber Competitors	$6.62 billion	$71.76 million	6.57

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

Insider & Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Automobile Components” companies are owned by institutional investors. 0.5% of Goodyear Tire & Rubber shares are owned by insiders. Comparatively, 19.9% of shares of all “Automobile Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Goodyear Tire & Rubber has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber’s peers have a beta of 3.68, meaning that their average stock price is 268% more volatile than the S&P 500.

Summary

Goodyear Tire & Rubber peers 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.