WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CF Industries Holdings Inc generates 108% more annual revenue ($7.08B vs $3.40B). CF leads profitability with a 20.5% profit margin vs 2.6%. SMG appears more attractively valued with a PEG of 0.72. CF earns a higher WallStSmart Score of 76/100 (B+).

CF

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 8.5Value: 7.3Quality: 8.3
Piotroski: 6/9

SMG

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 8.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CFUndervalued (+77.1%)

Margin of Safety

+77.1%

Fair Value

$423.07

Current Price

$125.54

$297.53 discount

UndervaluedFair: $423.07Overvalued
SMGUndervalued (+3.8%)

Margin of Safety

+3.8%

Fair Value

$69.86

Current Price

$64.33

$5.53 discount

UndervaluedFair: $69.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CF6 strengths · Avg: 8.7/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
22.8%8/10

Revenue surging 22.8% year-over-year

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

SMG2 strengths · Avg: 9.0/10
Debt/EquityHealth
-5.0510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.728/10

Growing faster than its price suggests

Areas to Watch

CF1 concerns · Avg: 2.0/10
PEG RatioValuation
5.662/10

Expensive relative to growth rate

SMG4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Return on EquityProfitability
-47.6%2/10

ROE of -47.6% — below average capital efficiency

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CF

The strongest argument for CF centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 35.3%. Revenue growth of 22.8% demonstrates continued momentum.

Bull Case : SMG

The strongest argument for SMG centers on Debt/Equity, PEG Ratio. PEG of 0.72 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 2.6% 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 1.92 — expect wider price swings.

CF is growing revenue faster at 22.8% — sustainability is the question.

CF generates stronger free cash flow (313M), providing more financial flexibility.

Bottom Line

CF scores higher overall (76/100 vs 43/100), backed by strong 20.5% margins and 22.8% revenue growth. Both earn "Strong 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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