WallStSmart

Smith AO Corporation (AOS)vsEaton Corporation PLC (ETN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eaton Corporation PLC generates 648% more annual revenue ($28.52B vs $3.81B). ETN leads profitability with a 14.0% profit margin vs 13.8%. AOS appears more attractively valued with a PEG of 1.55. AOS earns a higher WallStSmart Score of 53/100 (C-).

AOS

Buy

53

out of 100

Grade: C-

Growth: 2.7Profit: 8.0Value: 5.3Quality: 8.0
Piotroski: 6/9Altman Z: 4.78

ETN

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 7.0Value: 3.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AOSFair Value (-2.8%)

Margin of Safety

-2.8%

Fair Value

$78.07

Current Price

$57.20

$20.87 premium

UndervaluedFair: $78.07Overvalued

Intrinsic value data unavailable for ETN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AOS3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.7810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
28.1%9/10

Every $100 of equity generates 28 in profit

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

ETN3 strengths · Avg: 8.7/10
Market CapQuality
$162.16B9/10

Large-cap with strong market position

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

Areas to Watch

AOS3 concerns · Avg: 2.7/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.9%2/10

Revenue declined 1.9%

EPS GrowthGrowth
-10.5%2/10

Earnings declined 10.5%

ETN4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.103/10

Elevated debt levels

PEG RatioValuation
3.022/10

Expensive relative to growth rate

P/E RatioValuation
40.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : AOS

The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio.

Bull Case : ETN

The strongest argument for ETN centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum.

Bear Case : AOS

The primary concerns for AOS are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : ETN

The primary concerns for ETN are Debt/Equity, PEG Ratio, P/E Ratio. A P/E of 40.9x leaves little room for execution misses.

Key Dynamics to Monitor

AOS profiles as a declining stock while ETN is a growth play — different risk/reward profiles.

ETN carries more volatility with a beta of 1.24 — expect wider price swings.

ETN is growing revenue faster at 16.8% — sustainability is the question.

ETN generates stronger free cash flow (314M), providing more financial flexibility.

Bottom Line

AOS scores higher overall (53/100 vs 51/100). 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.

Smith AO Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.

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Eaton Corporation PLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.

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