Financial Survey: Tesla (NASDAQ:TSLA) vs. Bridgestone (OTCMKTS:BRDCY)

Bridgestone (OTCMKTS:BRDCY) and Tesla (NASDAQ:TSLA) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Earnings and Valuation

This table compares Bridgestone and Tesla”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.63 billion	1.05	$2.19 billion	$0.64	18.81
Tesla	$94.83 billion	15.73	$3.79 billion	$1.08	349.77

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

Profitability

This table compares Bridgestone and Tesla’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
Tesla	3.67%	3.82%	2.27%

Volatility & Risk

Bridgestone has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Tesla has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bridgestone and Tesla, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	3	0	1	2.50
Tesla	5	17	24	1	2.45

Tesla has a consensus target price of $412.19, indicating a potential upside of 9.12%. Given Tesla’s higher probable upside, analysts clearly believe Tesla is more favorable than Bridgestone.

Insider & Institutional Ownership

66.2% of Tesla shares are owned by institutional investors. 57.1% of Bridgestone shares are owned by insiders. Comparatively, 19.9% of Tesla shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Tesla beats Bridgestone on 12 of the 14 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 Tesla

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.