WallStSmart

Eastern Co (EML)vsRBC Bearings Incorporated (RBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RBC Bearings Incorporated generates 663% more annual revenue ($1.87B vs $245.33M). RBC leads profitability with a 15.4% profit margin vs 2.4%. EML appears more attractively valued with a PEG of 1.15. RBC earns a higher WallStSmart Score of 60/100 (C+).

EML

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 4.5Value: 6.0Quality: 8.5
Piotroski: 5/9Altman Z: 3.41

RBC

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 4.3Quality: 8.0
Piotroski: 4/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMLUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$25.59

Current Price

$23.24

$2.35 discount

UndervaluedFair: $25.59Overvalued

Intrinsic value data unavailable for RBC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EML2 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.4110/10

Safe zone — low bankruptcy risk

RBC4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.5%8/10

Strong operational efficiency at 25.5%

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

EPS GrowthGrowth
25.6%8/10

Earnings expanding 25.6% YoY

Areas to Watch

EML4 concerns · Avg: 3.3/10
P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

Market CapQuality
$142.81M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

RBC1 concerns · Avg: 2.0/10
P/E RatioValuation
70.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EML

The strongest argument for EML centers on Price/Book, Altman Z-Score. PEG of 1.15 suggests the stock is reasonably priced for its growth.

Bull Case : RBC

The strongest argument for RBC centers on Debt/Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 15.4% and operating margin at 25.5%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : EML

The primary concerns for EML are P/E Ratio, Market Cap, Return on Equity. Thin 2.4% margins leave little buffer for downturns.

Bear Case : RBC

The primary concerns for RBC are P/E Ratio. A P/E of 70.4x leaves little room for execution misses.

Key Dynamics to Monitor

EML profiles as a value stock while RBC is a growth play — different risk/reward profiles.

RBC carries more volatility with a beta of 1.43 — expect wider price swings.

RBC is growing revenue faster at 18.3% — sustainability is the question.

RBC generates stronger free cash flow (68M), providing more financial flexibility.

Bottom Line

RBC scores higher overall (60/100 vs 44/100), backed by strong 15.4% margins and 18.3% revenue growth. EML offers better value entry with a 26.6% margin of safety. 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.

Eastern Co

INDUSTRIALS · TOOLS & ACCESSORIES · USA

The Eastern Company designs, manufactures, and sells engineering solutions to industrial markets in the United States and internationally. The company is headquartered in Naugatuck, Connecticut.

RBC Bearings Incorporated

INDUSTRIALS · TOOLS & ACCESSORIES · USA

Regal Beloit Corporation designs, manufactures and sells electric motors, electric motion controls, and power generation and transmission products worldwide. The company is headquartered in Beloit, Wisconsin.

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