WallStSmart

Ero Copper Corp (ERO)vsValhi Inc (VHI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valhi Inc generates 127% more annual revenue ($2.10B vs $923.93M). ERO leads profitability with a 31.6% profit margin vs -3.5%. ERO earns a higher WallStSmart Score of 78/100 (B+).

ERO

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.16

VHI

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 3.0Value: 7.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EROSignificantly Overvalued (-17.9%)

Margin of Safety

-17.9%

Fair Value

$26.73

Current Price

$27.05

$0.32 premium

UndervaluedFair: $26.73Overvalued
VHIUndervalued (+6.4%)

Margin of Safety

+6.4%

Fair Value

$16.76

Current Price

$13.81

$2.95 discount

UndervaluedFair: $16.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERO6 strengths · Avg: 9.7/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.5%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
31.6%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

Revenue GrowthGrowth
110.4%10/10

Revenue surging 110.4% year-over-year

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

VHI2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Areas to Watch

ERO0 concerns · Avg: 0/10

No major concerns identified

VHI4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Market CapQuality
$385.48M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-7.1%2/10

ROE of -7.1% — below average capital efficiency

EPS GrowthGrowth
-88.1%2/10

Earnings declined 88.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : ERO

The strongest argument for ERO centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 31.6% and operating margin at 34.7%. Revenue growth of 110.4% demonstrates continued momentum.

Bull Case : VHI

The strongest argument for VHI centers on PEG Ratio, Price/Book. PEG of 0.32 suggests the stock is reasonably priced for its growth.

Bear Case : ERO

No major red flags identified for ERO, but monitor valuation.

Bear Case : VHI

The primary concerns for VHI are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

ERO profiles as a growth stock while VHI is a turnaround play — different risk/reward profiles.

ERO carries more volatility with a beta of 1.58 — expect wider price swings.

ERO is growing revenue faster at 110.4% — sustainability is the question.

ERO generates stronger free cash flow (20M), providing more financial flexibility.

Bottom Line

ERO scores higher overall (78/100 vs 44/100), backed by strong 31.6% margins and 110.4% revenue growth. Both earn "Strong 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.

Ero Copper Corp

BASIC MATERIALS · COPPER · USA

Ero Copper Corp. The company is headquartered in Vancouver, Canada.

Valhi Inc

BASIC MATERIALS · CHEMICALS · USA

Valhi, Inc. engages in the chemicals, components, and real estate development and management businesses in Asia Pacific, Europe, North America, and internationally.

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