WallStSmart

AAR Corp (AIR)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 1445% more annual revenue ($45.85B vs $2.97B). GE leads profitability with a 19.0% profit margin vs 3.2%. AIR appears more attractively valued with a PEG of 2.40. GE earns a higher WallStSmart Score of 65/100 (C+).

AIR

Buy

57

out of 100

Grade: C

Growth: 8.7Profit: 5.0Value: 8.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.44

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AIRUndervalued (+5.2%)

Margin of Safety

+5.2%

Fair Value

$119.81

Current Price

$101.33

$18.48 discount

UndervaluedFair: $119.81Overvalued
GEUndervalued (+24.0%)

Margin of Safety

+24.0%

Fair Value

$377.21

Current Price

$286.79

$90.42 discount

UndervaluedFair: $377.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIR3 strengths · Avg: 8.7/10
EPS GrowthGrowth
92.0%10/10

Earnings expanding 92.0% YoY

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

GE5 strengths · Avg: 8.8/10
Market CapQuality
$302.51B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

Areas to Watch

AIR4 concerns · Avg: 3.5/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.1x4/10

Trading at 16.1x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
4.942/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AIR

The strongest argument for AIR centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : AIR

The primary concerns for AIR are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.2% margins leave little buffer for downturns.

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GE scores higher overall (65/100 vs 57/100), backed by strong 19.0% margins and 17.6% revenue growth. 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.

AAR Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

AAR Corp. The company is headquartered in Wood Dale, Illinois.

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GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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