WallStSmart

Lowe's Companies Inc (LOW)vsMagna International Inc (MGA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 112% more annual revenue ($90.43B vs $42.67B). LOW leads profitability with a 7.3% profit margin vs 1.8%. MGA appears more attractively valued with a PEG of 0.44. MGA earns a higher WallStSmart Score of 64/100 (C+).

LOW

Hold

50

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.97

MGA

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 5.0Value: 8.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LOWSignificantly Overvalued (-36.2%)

Margin of Safety

-36.2%

Fair Value

$144.51

Current Price

$196.82

$52.31 premium

UndervaluedFair: $144.51Overvalued
MGAUndervalued (+47.2%)

Margin of Safety

+47.2%

Fair Value

$109.51

Current Price

$66.13

$43.38 discount

UndervaluedFair: $109.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LOW4 strengths · Avg: 8.8/10
Debt/EquityHealth
-5.6510/10

Conservative balance sheet, low leverage

Market CapQuality
$110.43B9/10

Large-cap with strong market position

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.12B8/10

Generating 3.1B in free cash flow

MGA3 strengths · Avg: 8.7/10
PEG RatioValuation
0.4410/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

Areas to Watch

LOW4 concerns · Avg: 3.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

MGA4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Profit MarginProfitability
1.8%3/10

1.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. PEG of 1.33 suggests the stock is reasonably priced for its growth.

Bull Case : MGA

The strongest argument for MGA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.44 suggests the stock is reasonably priced for its growth.

Bear Case : LOW

The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.

Bear Case : MGA

The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 1.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

MGA carries more volatility with a beta of 1.83 — expect wider price swings.

LOW is growing revenue faster at 8.3% — sustainability is the question.

LOW generates stronger free cash flow (3.1B), providing more financial flexibility.

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGA scores higher overall (64/100 vs 50/100). 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.

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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Magna International Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.

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