WallStSmart

Applovin Corp (APP)vsCanadian Natural Resources Ltd (CNQ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 607% more annual revenue ($38.76B vs $5.48B). APP leads profitability with a 60.8% profit margin vs 27.9%. APP appears more attractively valued with a PEG of 1.22. APP earns a higher WallStSmart Score of 77/100 (B+).

APP

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 8.7Quality: 9.0
Piotroski: 5/9Altman Z: 3.74

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPUndervalued (+10.3%)

Margin of Safety

+10.3%

Fair Value

$469.87

Current Price

$381.20

$88.67 discount

UndervaluedFair: $469.87Overvalued
CNQUndervalued (+76.8%)

Margin of Safety

+76.8%

Fair Value

$175.50

Current Price

$50.09

$125.41 discount

UndervaluedFair: $175.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
Return on EquityProfitability
213.0%10/10

Every $100 of equity generates 213 in profit

Profit MarginProfitability
60.8%10/10

Keeps 61 of every $100 in revenue as profit

Operating MarginProfitability
76.9%10/10

Strong operational efficiency at 76.9%

Revenue GrowthGrowth
65.9%10/10

Revenue surging 65.9% year-over-year

EPS GrowthGrowth
84.7%10/10

Earnings expanding 84.7% YoY

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

CNQ6 strengths · Avg: 9.2/10
Revenue GrowthGrowth
150.0%10/10

Revenue surging 150.0% year-over-year

EPS GrowthGrowth
372.3%10/10

Earnings expanding 372.3% YoY

Market CapQuality
$101.52B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Areas to Watch

APP3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

P/E RatioValuation
43.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
60.4x2/10

Trading at 60.4x book value

CNQ1 concerns · Avg: 2.0/10
PEG RatioValuation
3.422/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APP

The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 60.8% and operating margin at 76.9%. Revenue growth of 65.9% demonstrates continued momentum.

Bull Case : CNQ

The strongest argument for CNQ centers on Revenue Growth, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%. Revenue growth of 150.0% demonstrates continued momentum.

Bear Case : APP

The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.5x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : CNQ

The primary concerns for CNQ are PEG Ratio.

Key Dynamics to Monitor

APP carries more volatility with a beta of 2.50 — expect wider price swings.

CNQ is growing revenue faster at 150.0% — sustainability is the question.

CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.

Monitor ADVERTISING AGENCIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

APP scores higher overall (77/100 vs 67/100), backed by strong 60.8% margins and 65.9% revenue growth. CNQ offers better value entry with a 76.8% margin of safety. Both earn "Strong Buy" and "Strong 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.

Applovin Corp

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.

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Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

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