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BABA vs GT

BABA
Alibaba Group Holding Limited
NEUTRAL
Price
$173.23
Market Cap
$413.56B
Sector
Consumer Cyclical
AI Confidence
65%
GT
The Goodyear Tire & Rubber Company
BEARISH
Price
$7.10
Market Cap
$2.03B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
BABA
23.6
GT
--
Forward P/E
BABA
19.5
GT
6.74
P/B Ratio
BABA
2.71
GT
0.63
P/S Ratio
BABA
0.41
GT
0.11
EV/EBITDA
BABA
20.1
GT
6.95

Profitability

Gross Margin
BABA
41.17%
GT
18.44%
Operating Margin
BABA
2.17%
GT
3.54%
Profit Margin
BABA
12.19%
GT
-9.41%
ROE
BABA
11.19%
GT
-41.33%
ROA
BABA
4.03%
GT
1.15%

Growth

Revenue Growth
BABA
4.8%
GT
-0.6%
Earnings Growth
BABA
-51.8%
GT
34.6%

Financial Health

Debt/Equity
BABA
0.27
GT
2.13
Current Ratio
BABA
1.46
GT
1.06
Quick Ratio
BABA
0.84
GT
0.46

Dividends

Dividend Yield
BABA
0.59%
GT
--
Payout Ratio
BABA
14.4%
GT
0.0%

AI Verdict

BABA NEUTRAL

The Advanced Deterministic Scorecard reveals a mixed financial profile for Alibaba (BABA), with a weak Piotroski F-Score of 4/9 indicating suboptimal financial health, and no available Altman Z-Score limiting distress risk assessment. While valuation metrics appear favorable relative to peers—especially a Price/Sales of 0.41 and Forward P/E of 19.50—earnings growth is sharply negative (YoY EPS down 71%), and recent quarterly beats have reversed into consistent misses over the last four quarters. Strong insider sentiment and a bullish analyst consensus (strong_buy) contrast with deteriorating profitability and weak technical trends (10/100). The stock trades significantly above the Graham Number ($102.68) and intrinsic value estimate ($51.38), suggesting overvaluation unless growth rebounds materially.

Strengths
Attractive valuation multiples relative to sector: P/E (23.60) and Price/Sales (0.41) well below sector averages (Avg P/E: 49.05, Avg P/S: N/A but implied high)
Low debt burden with Debt/Equity of 0.27, well below sector average of 1.63, providing financial flexibility
Strong gross margin of 41.17%, reflecting pricing power and operational efficiency in core e-commerce
Risks
Weak Piotroski F-Score of 4/9 signals deteriorating financial health—penalizes health score per instructions
Earnings in freefall: YoY EPS growth down 71.0%, Q/Q down 70.4%, with last four quarters missing estimates by an average of -10.5%
Operating margin collapsed to 2.17%, indicating severe pressure in profitability despite stable gross margins
GT BEARISH

The Goodyear Tire & Rubber Company exhibits severe fundamental weakness, highlighted by a critical Piotroski F-Score of 2/9, indicating deteriorating financial health. While the stock appears superficially cheap with a Price/Book of 0.63 and a Price/Sales of 0.11, these metrics are overshadowed by a negative ROE of -41.33% and high leverage (Debt/Equity of 2.13). Despite a 'Buy' consensus from analysts and a target price of $9.76, the combination of stagnant revenue growth and poor liquidity (Quick Ratio 0.46) suggests a classic value trap. The long-term price trend is overwhelmingly negative, with a 60.2% decline over five years.

Strengths
Extremely low Price-to-Sales ratio (0.11)
Trading significantly below book value (P/B 0.63)
Positive forward P/E (6.74) suggesting potential for near-term earnings recovery
Risks
Critical financial health (Piotroski F-Score 2/9)
High leverage with Debt/Equity ratio of 2.13
Poor liquidity indicated by a Quick Ratio of 0.46

Compare Another Pair

BABA vs GT: Head-to-Head Comparison

This page compares Alibaba Group Holding Limited (BABA) and The Goodyear Tire & Rubber Company (GT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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