Goodyear Tire & Rubber Co (GT)vsMagna International Inc (MGA)
GT
Goodyear Tire & Rubber Co
$5.71
+0.88%
CONSUMER CYCLICAL · Cap: $1.75B
MGA
Magna International Inc
$66.09
-3.02%
CONSUMER CYCLICAL · Cap: $18.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 136% more annual revenue ($42.32B vs $17.91B). MGA leads profitability with a 1.6% profit margin vs -11.6%. MGA appears more attractively valued with a PEG of 0.39. GT earns a higher WallStSmart Score of 57/100 (C).
GT
Buy57
out of 100
Grade: C
MGA
Buy55
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
+46.8%
Fair Value
$108.60
Current Price
$66.09
$42.51 discount
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
Growing faster than its price suggests
Reasonable price relative to book value
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%
Moderate valuation
3.1% revenue growth
ROE of 5.6% — below average capital efficiency
1.6% margin — thin
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 PEG Ratio, Price/Book. PEG of 0.39 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. Debt-to-equity of 2.67 is elevated, increasing financial risk.
Bear Case : MGA
The primary concerns for MGA are P/E Ratio, Revenue Growth, Return on Equity. Thin 1.6% 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 1.85 — expect wider price swings.
MGA is growing revenue faster at 3.1% — sustainability is the question.
MGA generates stronger free cash flow (452M), providing more financial flexibility.
Bottom Line
GT scores higher overall (57/100 vs 55/100). MGA offers better value entry with a 46.8% 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.
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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