WallStSmart

Lowe's Companies Inc (LOW)vsShake Shack Inc (SHAK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 5726% more annual revenue ($90.43B vs $1.55B). LOW leads profitability with a 7.3% profit margin vs 2.6%. LOW appears more attractively valued with a PEG of 1.33. LOW earns a higher WallStSmart Score of 50/100 (D+).

LOW

Hold

50

out of 100

Grade: D+

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

SHAK

Hold

42

out of 100

Grade: D

Growth: 6.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.31
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
SHAKUndervalued (+30.1%)

Margin of Safety

+30.1%

Fair Value

$138.90

Current Price

$63.65

$75.25 discount

UndervaluedFair: $138.90Overvalued

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

SHAK1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
17.2%8/10

17.2% revenue growth

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

SHAK4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

PEG RatioValuation
2.552/10

Expensive relative to growth rate

P/E RatioValuation
70.8x2/10

Premium valuation, high expectations priced in

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 : SHAK

The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.

Bear Case : LOW

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

Bear Case : SHAK

The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SHAK carries more volatility with a beta of 1.66 — expect wider price swings.

SHAK is growing revenue faster at 17.2% — sustainability is the question.

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

Bottom Line

LOW scores higher overall (50/100 vs 42/100). SHAK offers better value entry with a 30.1% margin of safety. Both earn "Hold" 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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Shake Shack Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.

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