WallStSmart

PACCAR Inc (PCAR)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 83% more annual revenue ($27.78B vs $15.19B). PCAR leads profitability with a 8.9% profit margin vs 6.2%. PCAR appears more attractively valued with a PEG of 1.12. TXT earns a higher WallStSmart Score of 63/100 (C+).

PCAR

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.7Quality: 6.5
Piotroski: 1/9Altman Z: 2.09

TXT

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PCARSignificantly Overvalued (-37.6%)

Margin of Safety

-37.6%

Fair Value

$84.77

Current Price

$118.06

$33.30 premium

UndervaluedFair: $84.77Overvalued
TXTSignificantly Overvalued (-81.7%)

Margin of Safety

-81.7%

Fair Value

$53.54

Current Price

$91.08

$37.54 premium

UndervaluedFair: $53.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$59.41B9/10

Large-cap with strong market position

TXT2 strengths · Avg: 8.0/10
P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

PCAR2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

TXT2 concerns · Avg: 2.5/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Free Cash FlowQuality
$-250.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : TXT

The strongest argument for TXT centers on P/E Ratio, Price/Book. Revenue growth of 11.8% demonstrates continued momentum. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : PCAR

The primary concerns for PCAR are Piotroski F-Score, Revenue Growth.

Bear Case : TXT

The primary concerns for TXT are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

PCAR carries more volatility with a beta of 1.03 — expect wider price swings.

TXT is growing revenue faster at 11.8% — sustainability is the question.

PCAR generates stronger free cash flow (825M), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TXT scores higher overall (63/100 vs 56/100) and 11.8% revenue growth. Both earn "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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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