Renault (OTCMKTS:RNSDF) vs. Bridgestone (OTCMKTS:BRDCY) Financial Review

Bridgestone (OTCMKTS:BRDCY) and Renault (OTCMKTS:RNSDF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Dividends

Bridgestone pays an annual dividend of $0.22 per share and has a dividend yield of 1.7%. Renault pays an annual dividend of $1.72 per share and has a dividend yield of 6.0%. Bridgestone pays out 34.4% of its earnings in the form of a dividend. Renault pays out 36.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

24.6% of Renault shares are owned by institutional investors. 57.1% of Bridgestone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Bridgestone and Renault’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
Renault	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bridgestone and Renault, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgestone	0	3	0	2	2.80
Renault	1	0	0	0	1.00

Earnings and Valuation

This table compares Bridgestone and Renault”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgestone	$29.63 billion	1.15	$2.19 billion	$0.64	19.98
Renault	N/A	N/A	N/A	$4.71	6.08

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

Summary

Bridgestone beats Renault on 6 of the 9 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 Renault

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan. The company's Sale Financing segment offers sale financing, leasing, maintenance, and services contract under the Mobilize Financial Services brand. Its Mobility Services segment provides mobility and energy solutions for electric vehicle users under the Mobilize brand. In addition, it is also involved in the design, manufacture, and sale of passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands. Further, the company offers used vehicles and spare parts; and engages in business-to-business powertrain activities, and research and advanced engineering activities. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.