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GT vs MLCO

GT
The Goodyear Tire & Rubber Company
BEARISH
Price
$7.10
Market Cap
$2.03B
Sector
Consumer Cyclical
AI Confidence
85%
MLCO
Melco Resorts & Entertainment Limited
NEUTRAL
Price
$5.66
Market Cap
$2.3B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
GT
--
MLCO
12.3
Forward P/E
GT
6.74
MLCO
7.05
P/B Ratio
GT
0.63
MLCO
-1.77
P/S Ratio
GT
0.11
MLCO
0.45
EV/EBITDA
GT
6.95
MLCO
10.77

Profitability

Gross Margin
GT
18.44%
MLCO
37.94%
Operating Margin
GT
3.54%
MLCO
16.12%
Profit Margin
GT
-9.41%
MLCO
3.58%
ROE
GT
-41.33%
MLCO
--
ROA
GT
1.15%
MLCO
5.31%

Growth

Revenue Growth
GT
-0.6%
MLCO
8.6%
Earnings Growth
GT
34.6%
MLCO
--

Financial Health

Debt/Equity
GT
2.13
MLCO
--
Current Ratio
GT
1.06
MLCO
1.07
Quick Ratio
GT
0.46
MLCO
0.97

Dividends

Dividend Yield
GT
--
MLCO
--
Payout Ratio
GT
0.0%
MLCO
0.0%

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
MLCO NEUTRAL

MLCO presents a complex profile with a stable Piotroski F-Score of 6/9, indicating a recovering financial foundation. While valuation metrics are highly attractive—highlighted by a PEG ratio of 0.42 and a Forward P/E of 7.05—the company suffers from a critical balance sheet issue evidenced by a negative Price/Book ratio (-1.77), implying negative shareholders' equity. The company has successfully transitioned from deep pandemic-era losses to positive earnings, but the current price of $5.66 trades at a premium to its growth-based intrinsic value of $3.22. Overall, it is a high-risk value play dependent on continued operational recovery in the resorts sector.

Strengths
Extremely low PEG ratio (0.42) suggesting significant undervaluation relative to growth
Strong Forward P/E (7.05) compared to the Consumer Cyclical average (35.90)
Successful pivot from multi-year losses to consistent positive earnings surprises
Risks
Negative Price/Book ratio indicating negative shareholders' equity
Very thin net profit margin (3.58%) leaving little room for operational error
Tight liquidity with a current ratio of 1.07 and quick ratio of 0.97

Compare Another Pair

GT vs MLCO: Head-to-Head Comparison

This page compares The Goodyear Tire & Rubber Company (GT) and Melco Resorts & Entertainment Limited (MLCO) 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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