WallStSmart

Applied Industrial Technologies (AIT)vsFerguson Plc (FERG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ferguson Plc generates 555% more annual revenue ($31.16B vs $4.75B). AIT leads profitability with a 8.5% profit margin vs 6.3%. FERG appears more attractively valued with a PEG of 1.55. FERG earns a higher WallStSmart Score of 61/100 (C+).

AIT

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 7.0Value: 7.3Quality: 8.5
Piotroski: 3/9Altman Z: 4.35

FERG

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 10.0Quality: 6.8
Piotroski: 4/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AITSignificantly Overvalued (-86.6%)

Margin of Safety

-86.6%

Fair Value

$155.55

Current Price

$266.00

$110.45 premium

UndervaluedFair: $155.55Overvalued
FERGUndervalued (+39.9%)

Margin of Safety

+39.9%

Fair Value

$445.00

Current Price

$228.84

$216.16 discount

UndervaluedFair: $445.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIT2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

FERG4 strengths · Avg: 9.3/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

Market CapQuality
$50.46B9/10

Large-cap with strong market position

EPS GrowthGrowth
23.9%8/10

Earnings expanding 23.9% YoY

Areas to Watch

AIT3 concerns · Avg: 3.7/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
25.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

FERG4 concerns · Avg: 3.3/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Free Cash FlowQuality
$-552.13M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AIT

The strongest argument for AIT centers on Altman Z-Score, Return on Equity.

Bull Case : FERG

The strongest argument for FERG centers on Return on Equity, Altman Z-Score, Market Cap.

Bear Case : AIT

The primary concerns for AIT are PEG Ratio, P/E Ratio, Piotroski F-Score.

Bear Case : FERG

The primary concerns for FERG are PEG Ratio, P/E Ratio, Profit Margin.

Key Dynamics to Monitor

FERG carries more volatility with a beta of 1.14 — expect wider price swings.

AIT is growing revenue faster at 8.4% — sustainability is the question.

AIT generates stronger free cash flow (92M), providing more financial flexibility.

Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FERG scores higher overall (61/100 vs 52/100). 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.

Applied Industrial Technologies

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company is headquartered in Cleveland, Ohio.

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Ferguson Plc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada and Central Europe. The company is headquartered in Wokingham, the United Kingdom.

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