Best Buy Co. Inc (BBY)vsLowe's Companies Inc (LOW)
BBY
Best Buy Co. Inc
$90.80
+3.08%
CONSUMER CYCLICAL · Cap: $18.73B
LOW
Lowe's Companies Inc
$196.82
+0.12%
CONSUMER CYCLICAL · Cap: $110.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 114% more annual revenue ($90.43B vs $42.20B). LOW leads profitability with a 7.3% profit margin vs 3.0%. LOW appears more attractively valued with a PEG of 1.33. BBY earns a higher WallStSmart Score of 60/100 (C+).
BBY
Buy60
out of 100
Grade: C+
LOW
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.8%
Fair Value
$41.72
Current Price
$90.80
$49.08 premium
Margin of Safety
-36.2%
Fair Value
$144.51
Current Price
$196.82
$52.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 40 in profit
Earnings expanding 70.1% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.6% revenue growth
3.0% margin — thin
Operating margin of 3.9%
0.0% earnings growth
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.3% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.
Bull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.
Bear Case : LOW
The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
BBY carries more volatility with a beta of 1.30 — expect wider price swings.
LOW is growing revenue faster at 8.3% — sustainability is the question.
LOW generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBY scores higher overall (60/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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