WallStSmart

Smith AO Corporation (AOS)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 1231% more annual revenue ($50.64B vs $3.80B). GE leads profitability with a 17.7% profit margin vs 13.2%. AOS appears more attractively valued with a PEG of 1.43. GE earns a higher WallStSmart Score of 65/100 (C+).

AOS

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 6.0Quality: 8.0
Piotroski: 6/9Altman Z: 4.78

GE

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 3.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AOSFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$78.76

Current Price

$57.39

$21.37 premium

UndervaluedFair: $78.76Overvalued

Intrinsic value data unavailable for GE.

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
16.4x8/10

Attractively priced relative to earnings

GE5 strengths · Avg: 8.8/10
Market CapQuality
$335.82B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.9%10/10

Every $100 of equity generates 51 in profit

Operating MarginProfitability
20.6%8/10

Strong operational efficiency at 20.6%

Revenue GrowthGrowth
21.1%8/10

Revenue surging 21.1% year-over-year

Free Cash FlowQuality
$2.86B8/10

Generating 2.9B in free cash flow

Areas to Watch

AOS2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-15.0%2/10

Earnings declined 15.0%

GE4 concerns · Avg: 3.8/10
P/E RatioValuation
38.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.0x4/10

Trading at 19.0x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Debt/EquityHealth
1.093/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AOS

The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 20.6%. Revenue growth of 21.1% demonstrates continued momentum.

Bear Case : AOS

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

Bear Case : GE

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

Key Dynamics to Monitor

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

GE carries more volatility with a beta of 1.35 — expect wider price swings.

GE is growing revenue faster at 21.1% — sustainability is the question.

GE generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 55/100), backed by strong 17.7% margins and 21.1% 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.

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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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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