WallStSmart

Federal Signal Corporation (FSS)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Federal Signal Corporation generates 29% more annual revenue ($2.18B vs $1.70B). ZWS leads profitability with a 11.7% profit margin vs 11.3%. ZWS appears more attractively valued with a PEG of 1.68. FSS earns a higher WallStSmart Score of 66/100 (B-).

FSS

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 10.0Quality: 8.5
Piotroski: 4/9Altman Z: 4.24

ZWS

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 7.3Quality: 6.8
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FSSUndervalued (+34.7%)

Margin of Safety

+34.7%

Fair Value

$182.54

Current Price

$111.34

$71.20 discount

UndervaluedFair: $182.54Overvalued
ZWSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$33.96

Current Price

$46.21

$12.25 premium

UndervaluedFair: $33.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FSS4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
4.2410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
26.5%8/10

Revenue surging 26.5% year-over-year

EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

ZWS0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

FSS2 concerns · Avg: 4.0/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
28.0x4/10

Moderate valuation

ZWS3 concerns · Avg: 3.3/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

P/E RatioValuation
40.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FSS

The strongest argument for FSS centers on Altman Z-Score, Debt/Equity, Revenue Growth. Revenue growth of 26.5% demonstrates continued momentum.

Bull Case : ZWS

ZWS has a balanced fundamental profile.

Bear Case : FSS

The primary concerns for FSS are PEG Ratio, P/E Ratio.

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 40.6x leaves little room for execution misses.

Key Dynamics to Monitor

FSS profiles as a growth stock while ZWS is a value play — different risk/reward profiles.

FSS carries more volatility with a beta of 1.33 — expect wider price swings.

FSS is growing revenue faster at 26.5% — sustainability is the question.

FSS generates stronger free cash flow (90M), providing more financial flexibility.

Bottom Line

FSS scores higher overall (66/100 vs 56/100) and 26.5% 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.

Federal Signal Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Federal Signal Corporation designs, manufactures, and supplies a suite of integrated products and solutions for municipal, government, industrial, and commercial customers in the United States, Canada, Europe, and internationally. The company is headquartered in Oak Brook, Illinois.

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Zurn Elkay Water Solutions Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.

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