WallStSmart

Embraer S.A. (EMBJ)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 9% more annual revenue ($45.85B vs $41.88B). GE leads profitability with a 19.0% profit margin vs 4.7%. GE appears more attractively valued with a PEG of 4.94. GE earns a higher WallStSmart Score of 65/100 (C+).

EMBJ

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 5.0Value: 6.7Quality: 5.0

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMBJUndervalued (+19.4%)

Margin of Safety

+19.4%

Fair Value

$89.86

Current Price

$58.93

$30.93 discount

UndervaluedFair: $89.86Overvalued
GEUndervalued (+21.3%)

Margin of Safety

+21.3%

Fair Value

$376.74

Current Price

$296.56

$80.18 discount

UndervaluedFair: $376.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMBJ1 strengths · Avg: 10.0/10
EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

GE5 strengths · Avg: 8.8/10
Market CapQuality
$306.56B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

Areas to Watch

EMBJ4 concerns · Avg: 3.8/10
P/E RatioValuation
28.4x4/10

Moderate valuation

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.7x4/10

Trading at 16.7x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
4.942/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : EMBJ

The strongest argument for EMBJ centers on EPS Growth.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : EMBJ

The primary concerns for EMBJ are P/E Ratio, Price/Book, Revenue Growth. Thin 4.7% margins leave little buffer for downturns.

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

EMBJ profiles as a value stock while GE is a growth play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

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

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 52/100), backed by strong 19.0% margins and 17.6% revenue growth. EMBJ offers better value entry with a 19.4% margin of safety. 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.

Embraer S.A.

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Embraer S.A., designs, develops, manufactures, and sells aircraft and systems globally. The company is headquartered in So Paulo, Brazil.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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