Arcimoto (NASDAQ:FUV) and The Goodyear Tire & Rubber (NASDAQ:GT) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Arcimoto and The Goodyear Tire & Rubber, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Arcimoto | 0 | 1 | 3 | 0 | 2.75 |
The Goodyear Tire & Rubber | 1 | 6 | 4 | 0 | 2.27 |
Arcimoto presently has a consensus target price of $9.6667, indicating a potential downside of 60.07%. The Goodyear Tire & Rubber has a consensus target price of $9.6111, indicating a potential downside of 12.86%. Given The Goodyear Tire & Rubber's higher possible upside, analysts clearly believe The Goodyear Tire & Rubber is more favorable than Arcimoto.
Valuation & Earnings
This table compares Arcimoto and The Goodyear Tire & Rubber's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Arcimoto | $990,000.00 | 809.05 | $-15,340,000.00 | ($0.85) | -28.48 |
The Goodyear Tire & Rubber | $14.75 billion | 0.17 | $-311,000,000.00 | $1.08 | 10.21 |
Arcimoto has higher earnings, but lower revenue than The Goodyear Tire & Rubber. Arcimoto is trading at a lower price-to-earnings ratio than The Goodyear Tire & Rubber, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Arcimoto has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500. Comparatively, The Goodyear Tire & Rubber has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.
Insider and Institutional Ownership
10.1% of Arcimoto shares are held by institutional investors. Comparatively, 78.0% of The Goodyear Tire & Rubber shares are held by institutional investors. 34.7% of Arcimoto shares are held by company insiders. Comparatively, 1.4% of The 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 is poised for long-term growth.
Profitability
This table compares Arcimoto and The Goodyear Tire & Rubber's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Arcimoto | -645.68% | -126.41% | -81.68% |
The Goodyear Tire & Rubber | -13.81% | -14.22% | -3.08% |
Summary
The Goodyear Tire & Rubber beats Arcimoto on 9 of the 14 factors compared between the two stocks.