Head-To-Head Review: Aisin Seiki (OTCMKTS:ASEKY) vs. Goodyear Tire & Rubber (NASDAQ:GT)

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

Earnings & Valuation

This table compares Aisin Seiki 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
Aisin Seiki	$34.00 billion	0.30	$1.13 billion	$1.45	9.53
Goodyear Tire & Rubber	$18.28 billion	0.09	-$1.72 billion	($8.83)	-0.68

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

Risk & Volatility

Aisin Seiki has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Goodyear Tire & Rubber has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of recent ratings and price targets for Aisin Seiki and Goodyear Tire & Rubber, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aisin Seiki	1	0	0	1	2.50
Goodyear Tire & Rubber	2	4	2	0	2.00

Goodyear Tire & Rubber has a consensus target price of $8.47, indicating a potential upside of 41.35%. Given Goodyear Tire & Rubber’s higher probable upside, analysts plainly believe Goodyear Tire & Rubber is more favorable than Aisin Seiki.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aisin Seiki	3.14%	6.65%	3.64%
Goodyear Tire & Rubber	-14.37%	-2.95%	-0.50%

Summary

Aisin Seiki beats Goodyear Tire & Rubber on 10 of the 15 factors compared between the two stocks.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, 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.