Reviewing Fox Factory (NASDAQ:FOXF) and Goodyear Tire & Rubber (NASDAQ:GT)

Fox Factory (NASDAQ:FOXF) and Goodyear Tire & Rubber (NASDAQ:GT) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Fox Factory and Goodyear Tire & Rubber”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fox Factory	$1.47 billion	0.48	-$544.58 million	($7.14)	-2.33
Goodyear Tire & Rubber	$17.69 billion	0.07	-$1.72 billion	($8.83)	-0.50

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

Insider & Institutional Ownership

84.2% of Goodyear Tire & Rubber shares are held by institutional investors. 0.9% of Fox Factory shares are held by company insiders. Comparatively, 0.5% of Goodyear Tire & Rubber shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fox Factory	-20.39%	5.57%	2.37%
Goodyear Tire & Rubber	-14.37%	-2.95%	-0.50%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fox Factory	2	3	1	1	2.14
Goodyear Tire & Rubber	3	2	2	0	1.86

Fox Factory presently has a consensus price target of $19.60, suggesting a potential upside of 17.94%. Goodyear Tire & Rubber has a consensus price target of $8.06, suggesting a potential upside of 82.15%. Given Goodyear Tire & Rubber’s higher probable upside, analysts plainly believe Goodyear Tire & Rubber is more favorable than Fox Factory.

Risk and Volatility

Fox Factory has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Summary

Fox Factory beats Goodyear Tire & Rubber on 9 of the 15 factors compared between the two stocks.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.

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.