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GT vs HD

GT
The Goodyear Tire & Rubber Company
BEARISH
Price
$7.10
Market Cap
$2.03B
Sector
Consumer Cyclical
AI Confidence
85%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
GT
--
HD
23.1
Forward P/E
GT
6.74
HD
20.17
P/B Ratio
GT
0.63
HD
25.57
P/S Ratio
GT
0.11
HD
1.99
EV/EBITDA
GT
6.95
HD
15.68

Profitability

Gross Margin
GT
18.44%
HD
33.32%
Operating Margin
GT
3.54%
HD
10.08%
Profit Margin
GT
-9.41%
HD
8.6%
ROE
GT
-41.33%
HD
145.54%
ROA
GT
1.15%
HD
12.98%

Growth

Revenue Growth
GT
-0.6%
HD
-3.8%
Earnings Growth
GT
34.6%
HD
-14.2%

Financial Health

Debt/Equity
GT
2.13
HD
5.14
Current Ratio
GT
1.06
HD
1.06
Quick Ratio
GT
0.46
HD
0.21

Dividends

Dividend Yield
GT
--
HD
2.83%
Payout Ratio
GT
0.0%
HD
64.65%

AI Verdict

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
HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14

Compare Another Pair

GT vs HD: Head-to-Head Comparison

This page compares The Goodyear Tire & Rubber Company (GT) and The Home Depot, Inc. (HD) 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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