WallStSmart

Lowe's Companies Inc (LOW)vsMohawk Industries Inc (MHK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 709% more annual revenue ($90.43B vs $11.18B). LOW leads profitability with a 7.3% profit margin vs 4.2%. MHK appears more attractively valued with a PEG of 0.64. MHK earns a higher WallStSmart Score of 66/100 (B-).

LOW

Hold

50

out of 100

Grade: D+

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

MHK

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.90
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
MHKOvervalued (-6.3%)

Margin of Safety

-6.3%

Fair Value

$126.94

Current Price

$126.79

$0.15 premium

UndervaluedFair: $126.94Overvalued

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

MHK5 strengths · Avg: 8.6/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.648/10

Growing faster than its price suggests

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
37.6%8/10

Earnings expanding 37.6% 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

MHK3 concerns · Avg: 3.0/10
Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
4.2%3/10

4.2% 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 : MHK

The strongest argument for MHK centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.64 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 : MHK

The primary concerns for MHK are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

MHK carries more volatility with a beta of 1.18 — 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

MHK scores higher overall (66/100 vs 50/100). Both earn "Strong 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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Mohawk Industries Inc

CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA

Mohawk Industries is an American flooring manufacturer based in Calhoun, Georgia, United States. Mohawk produces floor covering products for residential and commercial applications in North America and residential applications in Europe.

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