WallStSmart

Alibaba Group Holding Ltd (BABA)vsGoodyear Tire & Rubber Co (GT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 5616% more annual revenue ($1.02T vs $17.91B). BABA leads profitability with a 10.1% profit margin vs -11.6%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

GT

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 3.0Value: 8.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+60.2%)

Margin of Safety

+60.2%

Fair Value

$382.49

Current Price

$121.06

$261.43 discount

UndervaluedFair: $382.49Overvalued
GTUndervalued (+40.3%)

Margin of Safety

+40.3%

Fair Value

$15.88

Current Price

$5.71

$10.17 discount

UndervaluedFair: $15.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
104.1%10/10

Earnings expanding 104.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

GT3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
34.6%8/10

Earnings expanding 34.6% YoY

Areas to Watch

BABA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-18.10B2/10

Negative free cash flow — burning cash

GT4 concerns · Avg: 2.5/10
Market CapQuality
$1.75B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.2%3/10

Operating margin of 0.2%

Return on EquityProfitability
-50.0%2/10

ROE of -50.0% — below average capital efficiency

Revenue GrowthGrowth
-8.7%2/10

Revenue declined 8.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bull Case : GT

The strongest argument for GT centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.43 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.

Bear Case : GT

The primary concerns for GT are Market Cap, Operating Margin, Return on Equity. Debt-to-equity of 2.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

BABA profiles as a value stock while GT is a turnaround play — different risk/reward profiles.

GT carries more volatility with a beta of 1.18 — expect wider price swings.

BABA is growing revenue faster at 2.9% — sustainability is the question.

GT generates stronger free cash flow (-893M), providing more financial flexibility.

Bottom Line

BABA scores higher overall (64/100 vs 57/100). GT offers better value entry with a 40.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alibaba Group Holding Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

Goodyear Tire & Rubber Co

CONSUMER CYCLICAL · AUTO PARTS · USA

Goodyear Tire & Rubber Company develops, manufactures, distributes and sells tires and related products and services worldwide. The company is headquartered in Akron, Ohio.

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