WallStSmart

Leonardo DRS, Inc. Common Stock (DRS)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 662% more annual revenue ($27.78B vs $3.65B). PCAR leads profitability with a 8.9% profit margin vs 7.6%. PCAR trades at a lower P/E of 25.3x. PCAR earns a higher WallStSmart Score of 52/100 (C-).

DRS

Hold

45

out of 100

Grade: D+

Growth: 6.7Profit: 5.5Value: 4.3Quality: 6.8
Piotroski: 6/9Altman Z: 1.52

PCAR

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRSOvervalued (-12.2%)

Margin of Safety

-12.2%

Fair Value

$33.75

Current Price

$40.63

$6.88 premium

UndervaluedFair: $33.75Overvalued
PCARSignificantly Overvalued (-24.7%)

Margin of Safety

-24.7%

Fair Value

$103.83

Current Price

$118.80

$14.97 premium

UndervaluedFair: $103.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRS0 strengths · Avg: 0/10

No standout strengths identified

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$62.52B9/10

Large-cap with strong market position

Areas to Watch

DRS3 concerns · Avg: 3.7/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PCAR3 concerns · Avg: 3.0/10
P/E RatioValuation
25.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRS

DRS has a balanced fundamental profile.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.18 suggests the stock is reasonably priced for its growth.

Bear Case : DRS

The primary concerns for DRS are P/E Ratio, Altman Z-Score, Profit Margin.

Bear Case : PCAR

The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

PCAR carries more volatility with a beta of 1.06 — expect wider price swings.

DRS is growing revenue faster at 8.1% — sustainability is the question.

PCAR generates stronger free cash flow (778M), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PCAR scores higher overall (52/100 vs 45/100). 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.

Leonardo DRS, Inc. Common Stock

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Leonardo DRS, Inc. (ticker: DRS) is a prominent provider of advanced technologies and solutions focused on enhancing national defense and security for both military and commercial sectors. The company specializes in electronic and sensor systems, sophisticated communication solutions, and comprehensive software development, primarily serving the U.S. Department of Defense and allied forces. With a robust emphasis on research and development, Leonardo DRS is well-positioned to deliver cutting-edge products that support diverse operational needs across land, air, and sea, solidifying its role as a key player in the global defense industry.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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