WallStSmart

Now Inc (DNOW)vsFerguson Plc (FERG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ferguson Plc generates 812% more annual revenue ($31.06B vs $3.40B). FERG leads profitability with a 6.3% profit margin vs -4.5%. FERG earns a higher WallStSmart Score of 59/100 (C).

DNOW

Buy

55

out of 100

Grade: C

Growth: 8.7Profit: 2.5Value: 4.0Quality: 6.5
Piotroski: 2/9Altman Z: 1.60

FERG

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DNOWSignificantly Overvalued (-32.4%)

Margin of Safety

-32.4%

Fair Value

$12.52

Current Price

$13.23

$0.71 premium

UndervaluedFair: $12.52Overvalued
FERGSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$144.90

Current Price

$229.58

$84.68 premium

UndervaluedFair: $144.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DNOW3 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
97.5%10/10

Revenue surging 97.5% year-over-year

EPS GrowthGrowth
90.5%10/10

Earnings expanding 90.5% YoY

FERG3 strengths · Avg: 9.3/10
Return on EquityProfitability
35.3%10/10

Every $100 of equity generates 35 in profit

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

Areas to Watch

DNOW4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.604/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-6.6%2/10

ROE of -6.6% — below average capital efficiency

Free Cash FlowQuality
$-103.00M2/10

Negative free cash flow — burning cash

FERG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.043/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DNOW

The strongest argument for DNOW centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 97.5% demonstrates continued momentum.

Bull Case : FERG

The strongest argument for FERG centers on Return on Equity, Altman Z-Score, EPS Growth.

Bear Case : DNOW

The primary concerns for DNOW are Altman Z-Score, Piotroski F-Score, Return on Equity.

Bear Case : FERG

The primary concerns for FERG are PEG Ratio, Revenue Growth, Profit Margin.

Key Dynamics to Monitor

DNOW profiles as a hypergrowth stock while FERG is a value play — different risk/reward profiles.

FERG carries more volatility with a beta of 1.13 — expect wider price swings.

DNOW is growing revenue faster at 97.5% — sustainability is the question.

FERG generates stronger free cash flow (680M), providing more financial flexibility.

Bottom Line

FERG scores higher overall (59/100 vs 55/100). Both earn "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.

Now Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

NOW Inc. distributes downstream power and industrial products for oil refining, chemical processing, LNG terminals, power generation services, and industrial manufacturing operations in the United States, Canada, and internationally. The company is headquartered in Houston, Texas.

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Ferguson Plc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada and Central Europe. The company is headquartered in Wokingham, the United Kingdom.

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