Comparing Goodyear Tire & Rubber (NASDAQ:GT) & Nifco (OTCMKTS:NIFCY)

Nifco (OTCMKTS:NIFCY) and Goodyear Tire & Rubber (NASDAQ:GT) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nifco and Goodyear Tire & Rubber, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nifco	0	0	0	0	0.00
Goodyear Tire & Rubber	2	5	2	0	2.00

Goodyear Tire & Rubber has a consensus price target of $8.54, suggesting a potential upside of 21.43%. Given Goodyear Tire & Rubber’s stronger consensus rating and higher possible upside, analysts plainly believe Goodyear Tire & Rubber is more favorable than Nifco.

Valuation & Earnings

This table compares Nifco and Goodyear Tire & Rubber”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nifco	N/A	N/A	N/A	$244.83	0.05
Goodyear Tire & Rubber	$18.28 billion	0.11	-$1.72 billion	($7.24)	-0.97

Nifco has higher earnings, but lower revenue than Goodyear Tire & Rubber. Goodyear Tire & Rubber is trading at a lower price-to-earnings ratio than Nifco, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nifco	N/A	N/A	N/A
Goodyear Tire & Rubber	-11.64%	0.93%	0.18%

Institutional and Insider Ownership

84.2% of Goodyear Tire & Rubber shares are held by institutional investors. 0.5% of Goodyear Tire & Rubber shares are held by company 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.

Summary

Goodyear Tire & Rubber beats Nifco on 8 of the 11 factors compared between the two stocks.

About Nifco

Nifco Inc. manufactures and sells industrial plastic parts and components in Japan, rest of Asia, North America, Mexico, and Europe. The company offers driver assistance systems, exterior, interiors, power train, and engine/fuel/transmission products for automobile; and products for motorcycle. It also offers household equipment, such as drawer closers, push latches, earthquake-proof latches, and door dampers; consumer electronics/office automation products that include dampers, free-stop hinges, push latches, and one-way clutches; and fashion/sport products, such as side release buckles, cord locks, and other buckles. In addition, the company offers buckles, fasteners, and speed lace systems; and manufactures and sells beds, as well as imports and sells furniture. Further, it operates automobile and motorcycle online showroom. The company was formerly known as Japan Industry Fastener Inc. and changed its name to Nifco Inc. in December 1970. Nifco Inc. was incorporated in 1946 and is headquartered in Kanagawa, Japan.

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.