WallStSmart

Applovin Corp (APP)vsStagwell Inc (STGW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applovin Corp generates 125% more annual revenue ($6.83B vs $3.04B). APP leads profitability with a 64.6% profit margin vs 0.5%. STGW appears more attractively valued with a PEG of 0.38. APP earns a higher WallStSmart Score of 79/100 (B+).

APP

Strong Buy

79

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.74

STGW

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 4.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPSignificantly Overvalued (-19.9%)

Margin of Safety

-19.9%

Fair Value

$268.28

Current Price

$308.06

$39.78 premium

UndervaluedFair: $268.28Overvalued

Intrinsic value data unavailable for STGW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
Return on EquityProfitability
139.4%10/10

Every $100 of equity generates 139 in profit

Profit MarginProfitability
64.6%10/10

Keeps 65 of every $100 in revenue as profit

Operating MarginProfitability
77.7%10/10

Strong operational efficiency at 77.7%

Revenue GrowthGrowth
52.8%10/10

Revenue surging 52.8% year-over-year

EPS GrowthGrowth
57.0%10/10

Earnings expanding 57.0% YoY

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

STGW2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

EPS GrowthGrowth
65.1%10/10

Earnings expanding 65.1% YoY

Areas to Watch

APP2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.113/10

Elevated debt levels

Price/BookValuation
32.7x2/10

Trading at 32.7x book value

STGW4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
142.0x2/10

Premium valuation, high expectations priced in

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 64.6% and operating margin at 77.7%. Revenue growth of 52.8% demonstrates continued momentum.

Bull Case : STGW

The strongest argument for STGW centers on PEG Ratio, EPS Growth. Revenue growth of 11.2% demonstrates continued momentum. PEG of 0.38 suggests the stock is reasonably priced for its growth.

Bear Case : APP

The primary concerns for APP are Debt/Equity, Price/Book.

Bear Case : STGW

The primary concerns for STGW are Return on Equity, Profit Margin, Operating Margin. A P/E of 142.0x leaves little room for execution misses. Debt-to-equity of 2.55 is elevated, increasing financial risk.

Key Dynamics to Monitor

APP profiles as a growth stock while STGW is a value play — different risk/reward profiles.

APP carries more volatility with a beta of 2.49 — expect wider price swings.

APP is growing revenue faster at 52.8% — sustainability is the question.

APP generates stronger free cash flow (869M), providing more financial flexibility.

Bottom Line

APP scores higher overall (79/100 vs 57/100), backed by strong 64.6% margins and 52.8% revenue growth. Both earn "Strong 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.

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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Stagwell Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Stagwell Inc. (STGW) is a leading digital marketing and communications agency, founded in 2015, renowned for its innovative, performance-driven strategies across advertising, public relations, and digital media platforms. Leveraging advanced technology and data analytics, Stagwell delivers measurable results for clients, solidifying its status as a front-runner in the evolving marketing landscape. With a strategic focus on targeted acquisitions, the company enhances its competitive advantage and growth potential, making it an attractive investment prospect for institutional investors seeking exposure to the expanding global digital economy.

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