WallStSmart

Eaton Corporation PLC (ETN)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 81% more annual revenue ($51.49B vs $28.52B). ZTO leads profitability with a 17.9% profit margin vs 14.0%. ZTO appears more attractively valued with a PEG of 1.18. ZTO earns a higher WallStSmart Score of 70/100 (B-).

ETN

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 7.0Value: 3.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.07

ZTO

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.36
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ETN.

ZTOUndervalued (+64.6%)

Margin of Safety

+64.6%

Fair Value

$70.28

Current Price

$22.28

$48.00 discount

UndervaluedFair: $70.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETN3 strengths · Avg: 8.7/10
Market CapQuality
$162.16B9/10

Large-cap with strong market position

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

ZTO5 strengths · Avg: 8.4/10
Altman Z-ScoreHealth
3.3610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

Free Cash FlowQuality
$2.79B8/10

Generating 2.8B in free cash flow

Areas to Watch

ETN4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.103/10

Elevated debt levels

PEG RatioValuation
3.022/10

Expensive relative to growth rate

P/E RatioValuation
40.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ETN

The strongest argument for ETN centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum.

Bull Case : ZTO

The strongest argument for ZTO centers on Altman Z-Score, P/E Ratio, Price/Book. Profitability is solid with margins at 17.9% and operating margin at 19.2%. Revenue growth of 22.0% demonstrates continued momentum.

Bear Case : ETN

The primary concerns for ETN are Debt/Equity, PEG Ratio, P/E Ratio. A P/E of 40.9x leaves little room for execution misses.

Bear Case : ZTO

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

Key Dynamics to Monitor

ETN carries more volatility with a beta of 1.24 — expect wider price swings.

ZTO is growing revenue faster at 22.0% — sustainability is the question.

ZTO generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ZTO scores higher overall (70/100 vs 51/100), backed by strong 17.9% margins and 22.0% revenue growth. Both earn "Strong 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.

Eaton Corporation PLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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