GT vs SRI vs ALSN

For growth investors, The Goodyear Tire & Rubber Company (GT) is the stronger pick with -3.

2% revenue growth year-over-year, versus -6. 7% for Allison Transmission Holdings, Inc. (ALSN). Allison Transmission Holdings, Inc. (ALSN) offers the better valuation at 16. 9x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate Stoneridge, Inc. (SRI) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Allison Transmission Holdings, Inc.

is actually cheaper at 14. 1x.

Over the past 5 years, Allison Transmission Holdings, Inc.

(ALSN) delivered a total return of +185. 8%, compared to -76. 5% for Stoneridge, Inc. (SRI). Over 10 years, the gap is even starker: ALSN returned +377. 7% versus GT's -69. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Goodyear Tire & Rubber Company (GT) is the lower-risk stock at 0.

98β versus Stoneridge, Inc. 's 2. 69β — meaning SRI is approximately 173% more volatile than GT relative to the S&P 500. On balance sheet safety, Stoneridge, Inc. (SRI) carries a lower debt/equity ratio of 106% versus 2% for The Goodyear Tire & Rubber Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Goodyear Tire & Rubber Company (GT) is pulling ahead at -3.

2% versus -6. 7% for Allison Transmission Holdings, Inc. (ALSN). On earnings-per-share growth, the picture is similar: Allison Transmission Holdings, Inc. grew EPS -11. 8% year-over-year, compared to -26. 0% for The Goodyear Tire & Rubber Company. Over a 3-year CAGR, ALSN leads at 2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Allison Transmission Holdings, Inc.

(ALSN) is the more profitable company, earning 20. 7% net margin versus -11. 9% for Stoneridge, Inc. — meaning it keeps 20. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALSN leads at 32. 3% versus -2. 0% for SRI. At the gross margin level — before operating expenses — ALSN leads at 48. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Allison Transmission Holdings, Inc.

(ALSN) trades at 14. 1x forward P/E versus 29. 4x for Stoneridge, Inc. — 15. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GT: 25. 3% to $8. 15.

In this comparison, ALSN (0.

9% yield) pays a dividend. GT, SRI do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Allison Transmission Holdings, Inc.

(ALSN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 08), 0. 9% yield, +377. 7% 10Y return). Stoneridge, Inc. (SRI) carries a higher beta of 2. 69 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ALSN: +377. 7%, SRI: -45. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GT is a small-cap quality compounder stock; SRI is a small-cap quality compounder stock; ALSN is a mid-cap deep-value stock. ALSN pays a dividend while GT, SRI do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.