WallStSmart

Element Solutions Inc (ESI)vsPPG Industries Inc (PPG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PPG Industries Inc generates 476% more annual revenue ($16.12B vs $2.80B). PPG leads profitability with a 9.8% profit margin vs 5.3%. PPG trades at a lower P/E of 15.6x. PPG earns a higher WallStSmart Score of 60/100 (C+).

ESI

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.41

PPG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESIOvervalued (-7.3%)

Margin of Safety

-7.3%

Fair Value

$30.22

Current Price

$43.90

$13.68 premium

UndervaluedFair: $30.22Overvalued
PPGUndervalued (+16.0%)

Margin of Safety

+16.0%

Fair Value

$155.95

Current Price

$109.61

$46.34 discount

UndervaluedFair: $155.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESI1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
41.5%10/10

Revenue surging 41.5% year-over-year

PPG2 strengths · Avg: 8.5/10
Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Areas to Watch

ESI4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

P/E RatioValuation
68.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-42.5%2/10

Earnings declined 42.5%

PPG2 concerns · Avg: 3.0/10
EPS GrowthGrowth
4.2%4/10

4.2% earnings growth

Free Cash FlowQuality
$-163.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ESI

The strongest argument for ESI centers on Revenue Growth. Revenue growth of 41.5% demonstrates continued momentum.

Bull Case : PPG

The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : ESI

The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 68.2x leaves little room for execution misses.

Bear Case : PPG

The primary concerns for PPG are EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ESI profiles as a hypergrowth stock while PPG is a value play — different risk/reward profiles.

ESI carries more volatility with a beta of 1.28 — expect wider price swings.

ESI is growing revenue faster at 41.5% — sustainability is the question.

ESI generates stronger free cash flow (-92M), providing more financial flexibility.

Bottom Line

PPG scores higher overall (60/100 vs 48/100). 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.

Element Solutions Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Element Solutions Inc produces and sells specialty chemicals in the United States, China, and internationally. The company is headquartered in Fort Lauderdale, Florida.

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PPG Industries Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.

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