Analyzing Lear (NYSE:LEA) & Yokohama Rubber (OTCMKTS:YORUY)

Lear (NYSE:LEA) and Yokohama Rubber (OTCMKTS:YORUY) are both consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Lear and Yokohama Rubber, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	4	5	0	2.56
Yokohama Rubber	0	0	0	0	N/A

Lear currently has a consensus price target of $153.56, suggesting a potential upside of 33.32%. Given Lear’s higher probable upside, equities analysts plainly believe Lear is more favorable than Yokohama Rubber.

Insider & Institutional Ownership

97.0% of Lear shares are owned by institutional investors. 0.8% of Lear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Lear and Yokohama Rubber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lear	2.30%	14.75%	5.00%
Yokohama Rubber	N/A	N/A	N/A

Earnings & Valuation

This table compares Lear and Yokohama Rubber’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.63 billion	0.28	$572.50 million	$9.17	12.56
Yokohama Rubber	N/A	N/A	N/A	$249.87	0.10

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

Summary

Lear beats Yokohama Rubber on 9 of the 10 factors compared between the two stocks.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About Yokohama Rubber

The Yokohama Rubber Co., Ltd. manufactures and sells tires in Japan, the United States, India, China, the Philippines, and internationally. It offers tires for passenger cars and light trucks, trucks and buses, construction and mining equipment, industrial vehicles and agricultural and forestry machinery, and motorsports, as well as aluminum alloy wheels and other automotive related components under the ADVAN, BluEarth, iceGUARD, GEOLANDAR, YOKOHAMA, ALLIANCE, GALAXY, PRIMEX, and AICHI brand names. The company also provides conveyor belts, rubber plates, various hoses, marine fenders, oil spill containment booms, marine hoses, rubber molded products, air springs, highway joints, rubber support, anti-seismic laminated rubber sheets for buildings, sound- and vibration-proof materials, and aerospace products; and adhesives and sealants under the Hamatite brand. In addition, it markets golf equipment and services under the PRGR brand. The company was incorporated in 1917 and is headquartered in Tokyo, Japan.