WallStSmart

Stepan Company (SCL)vsUSA Rare Earth, Inc. (USAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Stepan Company generates 142527% more annual revenue ($2.34B vs $1.64M). USAR leads profitability with a 0.0% profit margin vs -0.6%. SCL earns a higher WallStSmart Score of 55/100 (C).

SCL

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 3.0Value: 6.3Quality: 5.0

USAR

Avoid

21

out of 100

Grade: F

Growth: 4.3Profit: 2.5Value: 5.0Quality: 5.3
Piotroski: 2/9Altman Z: -41.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SCLUndervalued (+75.2%)

Margin of Safety

+75.2%

Fair Value

$266.45

Current Price

$50.03

$216.42 discount

UndervaluedFair: $266.45Overvalued

Intrinsic value data unavailable for USAR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SCL2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
49.1%8/10

Earnings expanding 49.1% YoY

USAR0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SCL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Market CapQuality
$1.11B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

USAR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SCL

The strongest argument for SCL centers on Price/Book, EPS Growth.

Bull Case : USAR

USAR has a balanced fundamental profile.

Bear Case : SCL

The primary concerns for SCL are PEG Ratio, Revenue Growth, Market Cap.

Bear Case : USAR

The primary concerns for USAR are Revenue Growth, EPS Growth, Profit Margin.

Key Dynamics to Monitor

SCL profiles as a turnaround stock while USAR is a value play — different risk/reward profiles.

USAR carries more volatility with a beta of 1.37 — expect wider price swings.

SCL is growing revenue faster at 1.9% — sustainability is the question.

SCL generates stronger free cash flow (-31M), providing more financial flexibility.

Bottom Line

SCL scores higher overall (55/100 vs 21/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Stepan Company

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Stepan Company produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia. The company is headquartered in Northfield, Illinois.

USA Rare Earth, Inc.

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals. The company is headquartered in Stillwater, Oklahoma.

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