WallStSmart

Ross Stores Inc (ROST)vsWest Pharmaceutical Services Inc (WST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 606% more annual revenue ($22.75B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 9.4%. WST appears more attractively valued with a PEG of 2.89. WST earns a higher WallStSmart Score of 67/100 (B-).

ROST

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 3.3Quality: 7.0
Piotroski: 5/9Altman Z: 3.10

WST

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 2.7Quality: 7.3
Piotroski: 5/9Altman Z: 4.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ROSTFair Value (-4.9%)

Margin of Safety

-4.9%

Fair Value

$183.53

Current Price

$225.81

$42.28 premium

UndervaluedFair: $183.53Overvalued
WSTSignificantly Overvalued (-32.4%)

Margin of Safety

-32.4%

Fair Value

$185.95

Current Price

$325.92

$139.97 premium

UndervaluedFair: $185.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROST3 strengths · Avg: 9.7/10
Return on EquityProfitability
36.7%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.04B9/10

Large-cap with strong market position

WST4 strengths · Avg: 9.0/10
EPS GrowthGrowth
56.1%10/10

Earnings expanding 56.1% YoY

Altman Z-ScoreHealth
4.9110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Revenue GrowthGrowth
21.0%8/10

Revenue surging 21.0% year-over-year

Areas to Watch

ROST3 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.8x4/10

Trading at 11.8x book value

PEG RatioValuation
3.312/10

Expensive relative to growth rate

WST2 concerns · Avg: 2.0/10
PEG RatioValuation
2.892/10

Expensive relative to growth rate

P/E RatioValuation
41.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ROST

The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.

Bull Case : WST

The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.

Bear Case : ROST

The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.

Bear Case : WST

The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.

Key Dynamics to Monitor

ROST profiles as a value stock while WST is a growth play — different risk/reward profiles.

WST carries more volatility with a beta of 1.17 — expect wider price swings.

WST is growing revenue faster at 21.0% — sustainability is the question.

ROST generates stronger free cash flow (921M), providing more financial flexibility.

Bottom Line

WST scores higher overall (67/100 vs 56/100), backed by strong 16.9% margins and 21.0% revenue growth. Both earn "Strong 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.

Ross Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

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West Pharmaceutical Services Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.

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