Goodyear Tire & Rubber Co (GT)vsMagna International Inc (MGA)
GT
Goodyear Tire & Rubber Co
$6.45
+1.10%
CONSUMER CYCLICAL · Cap: $1.85B
MGA
Magna International Inc
$56.11
+2.43%
CONSUMER CYCLICAL · Cap: $15.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 130% more annual revenue ($42.01B vs $18.28B). MGA leads profitability with a 2.0% profit margin vs -9.4%. 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
MGA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for GT.
Margin of Safety
-190.1%
Fair Value
$19.92
Current Price
$56.11
$36.19 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
Generating 1.3B in free cash flow
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.3B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Operating margin of 3.5%
ROE of -41.3% — below average capital efficiency
Revenue declined 60.0%
2.1% revenue growth
ROE of 7.1% — below average capital efficiency
2.0% margin — thin
Earnings declined 35.7%
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 : MGA
The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 suggests the stock is reasonably priced for its growth.
Bear Case : GT
The primary concerns for GT are Market Cap, Operating Margin, Return on Equity.
Bear Case : MGA
The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
GT profiles as a turnaround stock while MGA is a value play — different risk/reward profiles.
MGA carries more volatility with a beta of 1.83 — expect wider price swings.
MGA is growing revenue faster at 2.1% — sustainability is the question.
GT generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
GT scores higher overall (57/100 vs 56/100). 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.
Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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