Goodyear Tire & Rubber Co (GT)vsThe Home Depot Inc (HD)
GT
Goodyear Tire & Rubber Co
$5.71
+0.88%
CONSUMER CYCLICAL · Cap: $1.75B
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 830% more annual revenue ($166.59B vs $17.91B). HD leads profitability with a 8.4% profit margin vs -11.6%. GT appears more attractively valued with a PEG of 0.43. GT earns a higher WallStSmart Score of 57/100 (C).
GT
Buy57
out of 100
Grade: C
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.3%
Fair Value
$15.88
Current Price
$5.71
$10.17 discount
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 34.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Operating margin of 0.2%
ROE of -50.0% — below average capital efficiency
Revenue declined 8.7%
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-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.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
GT profiles as a turnaround stock while HD is a value play — different risk/reward profiles.
GT carries more volatility with a beta of 1.18 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
GT scores higher overall (57/100 vs 54/100). 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.
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.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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