WallStSmart

First Advantage Corp (FA)vsUL Solutions Inc. (ULS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

UL Solutions Inc. generates 94% more annual revenue ($3.11B vs $1.61B). ULS leads profitability with a 11.3% profit margin vs 0.5%. ULS trades at a lower P/E of 57.3x. ULS earns a higher WallStSmart Score of 62/100 (C+).

FA

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.87

ULS

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 3.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FAUndervalued (+45.9%)

Margin of Safety

+45.9%

Fair Value

$20.27

Current Price

$15.88

$4.39 discount

UndervaluedFair: $20.27Overvalued

Intrinsic value data unavailable for ULS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FA2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

ULS2 strengths · Avg: 8.5/10
Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

Areas to Watch

FA4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

P/E RatioValuation
320.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-82.4%2/10

Earnings declined 82.4%

ULS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
14.8x4/10

Trading at 14.8x book value

P/E RatioValuation
57.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FA

The strongest argument for FA centers on Debt/Equity, Price/Book.

Bull Case : ULS

The strongest argument for ULS centers on Return on Equity, EPS Growth.

Bear Case : FA

The primary concerns for FA are Return on Equity, Profit Margin, P/E Ratio. A P/E of 320.0x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Bear Case : ULS

The primary concerns for ULS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 57.3x leaves little room for execution misses.

Key Dynamics to Monitor

FA carries more volatility with a beta of 1.15 — expect wider price swings.

FA is growing revenue faster at 8.6% — sustainability is the question.

ULS generates stronger free cash flow (150M), providing more financial flexibility.

Monitor SPECIALTY BUSINESS SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ULS scores higher overall (62/100 vs 39/100). FA offers better value entry with a 45.9% 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.

First Advantage Corp

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

First Advantage Corporation provides technology solutions for human capital detection, verification, security and compliance globally. The company is headquartered in Atlanta, Georgia.

UL Solutions Inc.

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

UL Solutions Inc. provides safety science services globally. The company is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East.

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