WallStSmart

Stepan Company (SCL)vsVale SA ADR (VALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 9069% more annual revenue ($214.86B vs $2.34B). VALE leads profitability with a 7.3% profit margin vs -0.6%. VALE appears more attractively valued with a PEG of 0.34. VALE earns a higher WallStSmart Score of 67/100 (B-).

SCL

Buy

55

out of 100

Grade: C

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

VALE

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 8.7Quality: 5.0
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
VALEUndervalued (+81.5%)

Margin of Safety

+81.5%

Fair Value

$94.06

Current Price

$16.36

$77.70 discount

UndervaluedFair: $94.06Overvalued

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

VALE5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Market CapQuality
$71.41B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

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%

VALE3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : SCL

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

Bull Case : VALE

The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.34 suggests the stock is reasonably priced for its growth.

Bear Case : SCL

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

Bear Case : VALE

The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.

Key Dynamics to Monitor

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

SCL carries more volatility with a beta of 1.01 — expect wider price swings.

VALE is growing revenue faster at 2.7% — sustainability is the question.

VALE generates stronger free cash flow (723M), providing more financial flexibility.

Bottom Line

VALE scores higher overall (67/100 vs 55/100). SCL offers better value entry with a 75.2% margin of safety. 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.

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.

Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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