WallStSmart

Smith AO Corporation (AOS)vsParker-Hannifin Corporation (PH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 451% more annual revenue ($20.99B vs $3.81B). PH leads profitability with a 16.6% profit margin vs 13.8%. AOS appears more attractively valued with a PEG of 1.55. PH earns a higher WallStSmart Score of 55/100 (C-).

AOS

Buy

53

out of 100

Grade: C-

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

PH

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 3.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.78
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 PH.

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

PH3 strengths · Avg: 8.7/10
Market CapQuality
$105.45B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

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%

PH3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.2%2/10

Earnings declined 4.2%

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 : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 21.5%. Revenue growth of 10.6% demonstrates continued momentum.

Bear Case : AOS

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

Bear Case : PH

The primary concerns for PH are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

AOS profiles as a declining stock while PH is a mature play — different risk/reward profiles.

PH carries more volatility with a beta of 1.18 — expect wider price swings.

PH is growing revenue faster at 10.6% — sustainability is the question.

PH generates stronger free cash flow (881M), providing more financial flexibility.

Bottom Line

PH scores higher overall (55/100 vs 53/100), backed by strong 16.6% margins and 10.6% 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.

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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Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

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