WallStSmart

Lowe's Companies Inc (LOW)vsMacy’s Inc (M)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 280% more annual revenue ($86.29B vs $22.71B). LOW leads profitability with a 7.7% profit margin vs 2.1%. M appears more attractively valued with a PEG of 1.82. M earns a higher WallStSmart Score of 51/100 (C-).

LOW

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.16

M

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LOWSignificantly Overvalued (-185.3%)

Margin of Safety

-185.3%

Fair Value

$80.51

Current Price

$224.63

$144.12 premium

UndervaluedFair: $80.51Overvalued
MSignificantly Overvalued (-88.0%)

Margin of Safety

-88.0%

Fair Value

$11.56

Current Price

$17.87

$6.31 premium

UndervaluedFair: $11.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LOW2 strengths · Avg: 9.5/10
Debt/EquityHealth
-4.3110/10

Conservative balance sheet, low leverage

Market CapQuality
$135.81B9/10

Large-cap with strong market position

M5 strengths · Avg: 9.2/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
77.0%10/10

Strong operational efficiency at 77.0%

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

Free Cash FlowQuality
$1.06B8/10

Generating 1.1B in free cash flow

Areas to Watch

LOW4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

PEG RatioValuation
2.522/10

Expensive relative to growth rate

EPS GrowthGrowth
-10.8%2/10

Earnings declined 10.8%

M3 concerns · Avg: 3.0/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

EPS GrowthGrowth
-60.0%2/10

Earnings declined 60.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% demonstrates continued momentum.

Bull Case : M

The strongest argument for M centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 20.0% demonstrates continued momentum.

Bear Case : LOW

The primary concerns for LOW are Return on Equity, Profit Margin, PEG Ratio.

Bear Case : M

The primary concerns for M are PEG Ratio, Profit Margin, EPS Growth. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

LOW profiles as a value stock while M is a growth play — different risk/reward profiles.

M carries more volatility with a beta of 1.52 — expect wider price swings.

M is growing revenue faster at 20.0% — sustainability is the question.

M generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

M scores higher overall (51/100 vs 44/100) and 20.0% revenue growth. 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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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Macy’s Inc

CONSUMER CYCLICAL · DEPARTMENT STORES · USA

Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile apps under the Macy's, Bloomingdale's and bluemercury brands. The company is headquartered in New York, New York.

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