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 5806% more annual revenue ($1.04T vs $17.69B). BABA leads profitability with a 7.0% profit margin vs -14.4%. GT appears more attractively valued with a PEG of 0.43. GT earns a higher WallStSmart Score of 56/100 (C).

BABA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 8.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

GT

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 2.5Value: 8.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued
GTUndervalued (+38.1%)

Margin of Safety

+38.1%

Fair Value

$15.32

Current Price

$5.37

$9.95 discount

UndervaluedFair: $15.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA4 strengths · Avg: 8.8/10
Market CapQuality
$281.47B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

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: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

GT4 concerns · Avg: 2.3/10
Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-50.0%2/10

ROE of -50.0% — below average capital efficiency

Revenue GrowthGrowth
-4.8%2/10

Revenue declined 4.8%

Free Cash FlowQuality
$-69.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 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 P/E Ratio, Return on Equity, Profit Margin.

Bear Case : GT

The primary concerns for GT are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 2.77 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 1.11 — expect wider price swings.

BABA is growing revenue faster at 8.6% — sustainability is the question.

GT generates stronger free cash flow (-69M), providing more financial flexibility.

Bottom Line

GT scores higher overall (56/100 vs 55/100). BABA offers better value entry with a 58.3% 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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