WallStSmart

CF Industries Holdings Inc (CF)vsScotts Miracle-Gro Company (SMG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CF Industries Holdings Inc generates 122% more annual revenue ($7.74B vs $3.48B). CF leads profitability with a 27.1% profit margin vs 2.1%. CF appears more attractively valued with a PEG of 0.60. CF earns a higher WallStSmart Score of 83/100 (A-).

CF

Exceptional Buy

83

out of 100

Grade: A-

Growth: 6.7Profit: 9.5Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.37

SMG

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CFUndervalued (+41.0%)

Margin of Safety

+41.0%

Fair Value

$226.95

Current Price

$133.82

$93.13 discount

UndervaluedFair: $226.95Overvalued
SMGSignificantly Overvalued (-17.5%)

Margin of Safety

-17.5%

Fair Value

$57.20

Current Price

$52.36

$4.84 premium

UndervaluedFair: $57.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CF6 strengths · Avg: 9.5/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
49.3%10/10

Strong operational efficiency at 49.3%

EPS GrowthGrowth
99.6%10/10

Earnings expanding 99.6% YoY

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

PEG RatioValuation
0.608/10

Growing faster than its price suggests

SMG2 strengths · Avg: 9.0/10
Debt/EquityHealth
-10.1310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Areas to Watch

CF0 concerns · Avg: 0/10

No major concerns identified

SMG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Return on EquityProfitability
-47.6%2/10

ROE of -47.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : CF

The strongest argument for CF centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.1% and operating margin at 49.3%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : SMG

The strongest argument for SMG centers on Debt/Equity, PEG Ratio. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bear Case : CF

No major red flags identified for CF, but monitor valuation.

Bear Case : SMG

The primary concerns for SMG are Revenue Growth, Altman Z-Score, Profit Margin. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

CF profiles as a growth stock while SMG is a value play — different risk/reward profiles.

SMG carries more volatility with a beta of 1.81 — expect wider price swings.

CF is growing revenue faster at 17.6% — sustainability is the question.

CF generates stronger free cash flow (607M), providing more financial flexibility.

Bottom Line

CF scores higher overall (83/100 vs 48/100), backed by strong 27.1% margins and 17.6% revenue growth. Both earn "Exceptional 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.

CF Industries Holdings Inc

BASIC MATERIALS · AGRICULTURAL INPUTS · USA

CF Industries Holdings, Inc. is a North American manufacturer and distributor of agricultural fertilizers, based in Deerfield, Illinois.

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Scotts Miracle-Gro Company

BASIC MATERIALS · AGRICULTURAL INPUTS · USA

Scotts Miracle-Gro Company manufactures, markets, and sells lawn and garden products to consumers in the United States and internationally. The company is headquartered in Marysville, Ohio.

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