WallStSmart

Emerson Electric Company (EMR)vsRXO Inc. (RXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 219% more annual revenue ($18.32B vs $5.74B). EMR leads profitability with a 13.4% profit margin vs -1.7%. EMR appears more attractively valued with a PEG of 1.77. EMR earns a higher WallStSmart Score of 59/100 (C).

EMR

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 4.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.57

RXO

Hold

37

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EMR.

RXOUndervalued (+69.8%)

Margin of Safety

+69.8%

Fair Value

$54.13

Current Price

$21.75

$32.38 discount

UndervaluedFair: $54.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR3 strengths · Avg: 8.3/10
Market CapQuality
$79.02B9/10

Large-cap with strong market position

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
27.9%8/10

Earnings expanding 27.9% YoY

RXO1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

EMR3 concerns · Avg: 4.0/10
PEG RatioValuation
1.774/10

Expensive relative to growth rate

P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

RXO4 concerns · Avg: 2.0/10
PEG RatioValuation
22.222/10

Expensive relative to growth rate

Return on EquityProfitability
-6.3%2/10

ROE of -6.3% — below average capital efficiency

Revenue GrowthGrowth
-11.9%2/10

Revenue declined 11.9%

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

The strongest argument for EMR centers on Market Cap, Operating Margin, EPS Growth.

Bull Case : RXO

The strongest argument for RXO centers on Price/Book.

Bear Case : EMR

The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : RXO

The primary concerns for RXO are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

EMR profiles as a value stock while RXO is a turnaround play — different risk/reward profiles.

RXO carries more volatility with a beta of 1.85 — expect wider price swings.

EMR is growing revenue faster at 2.9% — sustainability is the question.

EMR generates stronger free cash flow (694M), providing more financial flexibility.

Bottom Line

EMR scores higher overall (59/100 vs 37/100). RXO offers better value entry with a 69.8% 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.

Emerson Electric Company

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.

RXO Inc.

INDUSTRIALS · TRUCKING · USA

RXO Inc. is a premier transportation and logistics provider specializing in efficient freight solutions throughout North America. Utilizing cutting-edge technology and advanced data analytics, RXO enhances supply chain operations to ensure timely and cost-effective delivery for its clients. The company's unwavering commitment to sustainability and innovation positions it favorably within the evolving logistics landscape, appealing to institutional investors. With an extensive network and robust strategic partnerships, RXO adeptly meets diverse customer demands, solidifying its role as a significant player in the logistics sector.

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