WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CF Industries Holdings Inc generates 113% more annual revenue ($7.41B vs $3.47B). CF leads profitability with a 23.7% profit margin vs 3.2%. SMG appears more attractively valued with a PEG of 0.85. CF earns a higher WallStSmart Score of 75/100 (B).

CF

Strong Buy

75

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.37

SMG

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 6.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CFUndervalued (+49.7%)

Margin of Safety

+49.7%

Fair Value

$217.58

Current Price

$117.54

$100.04 discount

UndervaluedFair: $217.58Overvalued
SMGSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$57.14

Current Price

$57.67

$0.53 premium

UndervaluedFair: $57.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CF6 strengths · Avg: 9.5/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.9%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

EPS GrowthGrowth
115.1%10/10

Earnings expanding 115.1% YoY

Profit MarginProfitability
23.7%9/10

Keeps 24 of every $100 in revenue as profit

Revenue GrowthGrowth
19.4%8/10

19.4% revenue growth

SMG4 strengths · Avg: 8.5/10
Debt/EquityHealth
-8.1910/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.858/10

Growing faster than its price suggests

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

Areas to Watch

CF1 concerns · Avg: 2.0/10
PEG RatioValuation
3.252/10

Expensive relative to growth rate

SMG3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
3.2%3/10

3.2% 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 23.7% and operating margin at 33.6%. Revenue growth of 19.4% demonstrates continued momentum.

Bull Case : SMG

The strongest argument for SMG centers on Debt/Equity, PEG Ratio, P/E Ratio. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bear Case : CF

The primary concerns for CF are PEG Ratio.

Bear Case : SMG

The primary concerns for SMG are Altman Z-Score, Profit Margin, Return on Equity. Thin 3.2% 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 1.83 — expect wider price swings.

CF is growing revenue faster at 19.4% — sustainability is the question.

CF generates stronger free cash flow (273M), providing more financial flexibility.

Bottom Line

CF scores higher overall (75/100 vs 53/100), backed by strong 23.7% margins and 19.4% 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.

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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